Financial Times , 1982, UK, English

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PUBLISHED IN LONDON AND FRAN

Wednesday. June 9 1982

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continental Etas: Denmark ktb.bo: France FtKto ' Germany dm-2.0-. italy l i.itoo, Netherlands nfos: Norway ktE-QQ; Portugal b»c50: spaiN Pt»B; Sweden Kr 6.W; Switzerland Frz.0: eibe sop; malta aoe j

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BUSINESS

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a success
say Unions

National Health Service trade
unions claimed succcss as more
than 60,000 non-NHS workers
joined their - th^rd -24-hour
strike in support of a 12 per
cent pay claim. .

The Government ' acknow-
ledged this was- the biggest ,
strike so far, with the strongest
action in parts ot the North,
particularly Yorkshire. . There
miners who walked out ' in
support brought the coalfield to
an ear-standstill.

as fill

that the 1 Gai
would make concessions. The
TOC ‘health services committee
may decide today -to step up the
dispute. Back Page

1 cent

. No indication was given, how-
ever, that the 1 Government

• STERLING dosed in London

'1 cent' down on the day at
51.783.- It rose 10 DM L2775
(DML 427), FEr 1L117S (FPr
11.1075) andSwFr 3.6425 (SwFr
3.64), but' eased to Y440
(Y440.5). Us tiade^veighted
index, was unchanged at 90.9.
Page 32 '

• DOLLAR rose to DM 2.405

(DM 2-382) , FFr 6-24 (FFr 62).

SwFr 2-0435 (SwFr 2.03) and
Y2402 (Y245.75). Us trade-
weighted index was 116.6
(115.9). Page 32

• GOLD rose $6 in London to
dose at S 330275. In New York.

ii -C'c-

Airliner crashes

All 135 people, including nine
crew, were killed when a Boeing
727 of Brazilian airline Vasp
crashed in mountains near For-
taleza . on a Sight from Sao
PauJo.

Pope for Poland

Polish church and state autho-
rities have agreed on. a visit .to
Poland by the Pope in August.
Page 2 * *

Flights ciit -

Briti^ Airways cancelled- 16 of
its 23 intercontinental .flights in
a . "dispute with cabin’ 'Crews
claiming longer rest-periods. -
Page i2 ' •

The Queen Mother was safe yes-
■tierday after a midair scare; over
Windsor when 1 herO helicopter
developed a taulrseoo.mfc;- after,
take-off and ;a:.^
tending was. made. ' T ..'

Father punished :

A i Birmingham 1 mah who
assaulted . his thw-in\pth-old
daughter after her crying awoke
him, fracturing; her skutl and
causing . permanent brain
damage, was ordered to do 200
■hours unpaid community work.

Third World calt

Ways to channel money to the
Third World to ayert energy
crises were called for by the
chairman-' of the International
Energy Development’ Corpora-
tion. Pag* .8 .

Fraser’s threat

Australian Premier /Malcolm
Eraser said that if necessary he
would recall Parliament to oveiv ■
rule Victoria's plan to make the
State a nuclear-free zone. Page 4

Moonies raided

French police raided centres of
Sung Myung Jfioon's Unification.
Church in Paris and sis other.,
cities on a judge’s orders. They,
questioned 45 people and
seized documents.

j

Wigs off in court

jVs the heatwave contiiuied,
judges and lawyers at the Court
r>f Appeal removed their wigs.
In an ti-d rough t moves in the
West Country a hosepipe ban.
was introduced in .58 more
Devon parishes. Weather, Back
Page

Briefly - - -

Westminster ' Press former.
managing director - william
Morrell left £244.458 net.

Swiss mountains claimed 217
lives lay year, 12 more-than in
lflSO, Mostly due to ciimbecs’ in-
experience.

South Africa detained two
people in connection with recent
explosions, in Natal.

the Comex June close was
¥331.5 ($337). Page 25

• EQUITIES: the FT 30-sbarc

index closed L4 np at 594,
having- beeh witlnii a point of
its record 5972 soon after -the
opening. The FT-Aetuaries All-
Share reached, an all time high
of SdOar-per cent (33926).
Page 31 * . '

• /GILTS: *th^ tJoYftrnm'eht
'Securities Index sMppalto 7929
(70.4). Page 31

• WALL STREET was • 1.61
Bows' at. 302*42. near the .close.
Page, 30 ;::

• EEC. mandatory controls op
steel.production- were renewed
for .' another year after Itafly
allowed , ite- objections to. be
overridden. Back Page .

• .JAPAN : AND EEC face a
further dispute oh .the con-
ditions- for granting export

credftfr.tbis year. Page 6

• UK AND .JAPAN are close
. to agreement . oh a framework

for- co-operation in telecom-
munications -technology. Back

.Page"-

• DEPARTMENT of Indnrtry
launched a £60m aid scheme to
encourage' engineering com-
panies to automatic production
lines with electro'uoc teidmiques.
Page 10

-• BRITISH GAS Corporation
is being barred . by the Govern-
ment ' from - exploring fn
prospective oil-producing areas
of the UK Continental Shelf.
Page Hk London oil spot prices.
Page 25

• MANUFACTURERS 1 ' output
prices increased by only 0.5 per
cent last month. Back Page

• POST OFFICE Engineering

Union has accepted a pay pack-
age with British Telecom which
would give an 8 per cent rise
all round, but it includes ,525
per cent pay cuts for dew staff.
Page 12 .

• MIDLAND BANK is raising
£100m by placing; a .25-year
unsecured, loan stock, following
Barclays' similar move -.four
months ago. Back -Page

• MIDLAND- and. International

Baaiks. 45 per cent owned by
Midland Bank, raised . pre-tax
profits by 1224 pear cent to
£12.7m for fee- year -to March
31. Page- 23 -

• BASS’S laxdhle profits feH
by £8.4m to £43. lm for the 28
weeks to April 10.- Page 20;
Lex, Back Page .

0 SKETCHLEY lifted pre-tax
profits by 41 per ceat to £7.28m
for the year, to April 2. Page 20

CHIEF price chahges yesterdw

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Israeli army in Lebanon near
link with Christian forces

BY DAVID LENNON IN TEL AVIV AND NORA BOUSTANY IN BEIRUT

ISRAELI ' armoured forces
struck more deeply into
Lebanon yesterday and, at
nightfall, were near to cutting
the main road between Beirut
and. Damascus, the Syrian
capitaL'

The Israelis were close tu
linking with the Christian
forces in the north, which have
received considerable military
supplies from Jerusalem over
the past few years.

In Jerusalem Mr Menahem
Begin, the Israeli Prime
Minister, told Parliament that
Israel would soon request nego-
tiations with “the legitimate
Lebanese government and pro-
pose a peace treaty on the basis
of the total territorial unity of
Lebanon.” He said Israel had

no territorial . ambitions in
Lebanon.

[In London. President Ronald
Reagan urged Israel to “bring
its forces home," while Mrs
Margaret Thatcher, the Prime
Minister, insisted' that the ler-
ritorial integrity of Lebanon
must be restored and the
Palestinian people be allowed
self-determination.

Mr Alexander Haig, the U.S.
Secretary of State,. said that the
U.S. had launched a diplomatic
campaign, for a ceasefire in

Lebanon,' followed by Israeli
withdrawal- However, he said
no U.S. decision had been taken
on punitive action against
Israel.]

It looked increasingly likely
that Israel was planning' to

occupy all of Lebanon tip to the
Beirut-Zahle line. Its aim
seemed to be to join up with
the Christian forces, and re-
create Lebanese unity by force
under a pr&Jsrael. Christian
government.

The Israeli Prime Minister
was reported to have issued a
set of four demands, which
would have .to be met before
tbc Israeli forces would be
pulled out:

• The withdrawal of all Syrian
forces from Lebanon.

• The restoration of the areas,
formerk- controlled by the
Palestine Liberation Oigani-

Conlinued on Back Page
Middle East reports Page 4;

Editorial Comment Page IS

Reagan calls for freedom crusade

aid democratic forces in both
Right-wing dictatorships . and
Communist countries.

His address was the first by
an American President to a

BY REGINALD DALE

PRESIDENT RONALD Haig. U.S. Secretary of State-, fered the bloodletting of World

REAGAN used his historic said later. War 17,” he said.

Speech to both Houses of Par* The most applauded part- of Mr Reagan’s main theme was
iiament yesterday to launch a Mr • Reagan's wide-ranging the peaceful nature, and
worldwide “crusade for free- speech, however, was a brief superiority, of democracy in
dam” >fn which fee U.S. would section in winch he renewed contrast to the evils of totali-

American support for -the tarianism and dictatorship.
British forces fighting in the To some mirth from his
F&Ikfands. * audience, he challenged Presi-

The young British soldiers dent Leonid Brezhnev, the
were not fighting for “mere Soviet leader, to a reciprocal
joint meeting of members of real estate.” faraway lumps of television exchange in which

both Houses. rock and earth.' he said. Mr Reagan Would speak to the

. In a sharply anti-Soviet “They fight for a cause, for Soviet people and Mr Brezhnev
speech he called on- the Western the belief that armed aggres- to the Americans,
democracies .not to be shy sion must not be allowed to He also suggested that
about tbeir achevements. and succeed, and' that, people must panels of Snviet and American
to go over to ibe offensive participate in the decisions of newsmen should periodically
against 'international Com- Government tinder the rule of appear, on each other's screens
munism. law. to discuss major events.

At a subsequent lunch at 10 “If there had been firmer Mr Reagan announced a
Downing Street Mrs Margaret support for feat principle some privately-financed study
Thatcher described the speech 45 years ago. perhaps our
as “a triumph,” Mr Alexander generation wouldn't have suf-

which Democrats and Republi-
cans would -participate to see

bow the U.S. could best contri-
bute “to the global campaign
for democracy ' now gathering
force." .

Representatives of business,
labour and other major insti-
tutions of, U.S. society would
co-operate in the study, he said.

Though the initial funding
will be private, the aim is to
determine bow both U.S.
Government and private finance
could be channelled to “sup-
pnrters of democracy," such as
political parties and trade
unions, in non-democratic
countries, both Right and Left.

Mr Reagan approvingly cited
West German political activity
of tbis nature as a precedent,
Text of speech and pictures
Page 6; Parliamentary sketch.

Page 12

Continued on Back Page

Thatcher rules out new move for ceasefire

BY PETER RKJOEU. AND DAVID TONGE

MRS MARGARET THATCHER claimed it was that stood in the Spanish newspaper Ya he said: in their future administration,.
wtaFout any ;(Tesh . diplomatic way of peace, not Britain. - “ Supported by Hispanic Amer- ■ they also insisted that no-firm

initiative at the UN yesterday to Nevertheless' ft Is clear that to %Jid many -other peoples in decision had been made to rule

secure a ceasefire in the Falk- the Government seeks to retain the world. Argentina is ready this out totally for all time,
lands.- but stiU left op^n : fee international support by pro vifi- to continue with the war for Since fee seven-nation Ver-
bption of Argentina's being able- ing a last opportunity for ?s many months or years as it sailles summit there has been

to withdraw its forces from the Argentine with drawaj without ‘ s necessary". only limited discussion about

islands. bumrliaJtion. ’ This spectre of ihp Falklands the Falklands between British

‘ The . conclusion of most MPs ^ re Thattcher said: "If the coming under continued attack Ministers and officials and
was that it was. now only .a Argentines tell us feat they are after repossession has already
matter of time, possibly only a prepared to withdraw, we slrall caused Britain to ask the U.S.
short period, before there was e 05 * 1 ® feem to do ’ so wife to join in security arrange-
news of fee retaking of Port sa/e ^'- dignity, and despatch. So meats to protect the islanders.

Stanley. 1 Stwo* ^ *** lwA ' live Mr . Alexander Haig. U.S.

During questions in .the Com- ‘ _ . . _ . Secretary of State, said yester- re st of their talks,

mens yest e r d ay Mrs Thatcher . Every British Embassy has day that the U.S. response British officials last night
stressed . that Britain had tried been instnicted to underline “ would depend very much on were underlining the support
for a king time to get a peace- f .^ at Britain continues to give the conditions of such a peace- j( r Reagan gave yesterday to
ful settlement but had been Argentina the option .of an keepirig force, its mandate, its the “young men” fighting for
blocked by fee Argentine junta, honourable withdrawal. ■ terms, and the political frame- Britain. They admit that no

«iAr i f . 4 •+ u But in Buenos Aires Presi- w ork under which it was set agreement has. yet been

... We shall now have to take dent j^poido Galtieri said _ . ____ reached on what follows repos-

President Reagan and his team.

The issue may have been
raised in the ten minutes feat
the two countries’ Foreign
Ministers met alone yesterday,
but was not- discussed in fee

back by force what fee Argen-
tines would not give up by
adhering to the TJN Security
Council resolution," she said.

In reply to ’pressure from
Mir Michael Foot, the Opposition

that Argentina would withdraw
troops only if Britain did so
too, and handed control of the
Falklands for a period to the
UN. • .

He warned Britain that
Leader. Mrs Thatcher saw no Argentina would fight on for Government’s belief that tl»
point in a fresh British inkttive years for control of fee islands, islanders would not want the
at the UN, since, Argentina she In an interview wife the Argentines involved in any way

Britain plans to ask' other
countries in Latin America for
help to ensure the islanders fee
peace they need to decide on
tbeir future.

While officials underlined the

session of fee islands.

Parliament Page 12

Major banks cut
base lending
rates to 12i%

BY PAUL TAYLOR AND MAX WILKINSON

THE major banks lowered their
base lending rates yesterday by
half a point to 12 1 per cent.

The move came as official
estimates suggested that fee
money supply was on target
and 1 that inflationary pressures
were easing.

Market rates have been
lowered by the recent strength
of sterling, the market's
optimism about fee outcome of
the Falklands crisis, and fee
possibility feat the problem of
U.S. budget deficits could be
resolved this week.

The Bank of England indi-
cated strongly in the past few
days feat it was prepared to
sanction a. cut in base rates,
which determine most over-
draft charges.

The Bank evidently believes
that the somewhat slower rate
of increase in clearing banks*
lending to the private sector,
suggested by figures out yester-

17%

16*

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L- SOCIETIES
MKTBASE
BATE

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. 1981

CtEflfllBS BAMkF|
.BASE RATE

1982

borrowers by a quarter of a per-
centage point to 2 per cent, a
reduction in the annual percent-
age rate (apr) from 30.6 per
cent to 26.82 per cent.

The High Street banks said

they had no “ immediate ” plans
to reduce interest rates on their
day, allows room for manoeuvre home mortgages in spite 'of the

on interest rates.

However, it seems unlikely
that there will be an early re-
daction in mortgage rates.

The BaDk may also have been
influenced by the sharp fall of
the inflation rate in April to
an annual rate of 9.4 per cent
and a further easing of indus-
try’s costs, announced yester-
day.

Its latest estimate of the
growth of the money supply
suggests that sterling M3, fee

Alliance . index-linked plan
Page 10; Bank staff may block
Saturday opening Page 12;
Midland Bank loan stock issue
Back Page- Lex Back Page

broad measure of money, has
been growing at an annual rate
of about 10 per eent since Feb-
ruary. The Government’s target
is between 8 and 12 per cent

The pound’s value remained
unchanged yesterday against a
basket of currencies, . as
measured . ^ by fee Bank p£
England; In spite of" a ent in
interest rates.

The cot in base rates was the
first since March 1 and the
seventh reduction since base
rates stood at 16 per rent in
October.

The cut had been widely
expected after an easing in UK
shon term interest rates. The
National Westminster Bank led
the move arm was followed
quickly by all fee other major
retail banks.

The banks are reducing their
deposit rates .to savers at fee
same time, to 9.5 per cent, a cut
of three quarters of a percen-
tage p<xiat or half a point
depending on fee individual
bank.

Midland, later in the day cut
its interest rate to Access card

base rate cut

The view of most of fee
retail banks is feat mortgage
rates had moved down ahead of
base rates

Andrew Taylor writes; Build-
ing societies are also unlikely
to reduce fee recommended 13}
per cent mortgage rate when
the Council of the Building
Societies Association meets in
London on Friday. Most of the
clearing banks charge 13J per
cent on home loans, although
they claim feat differing
methods of calculating interest
payments make bank mortgages
fully competitive with those of
building societies.

The reduction in bank base
rates yesterday was thought to
be insufficient to trigger a
response by the societies —
particularly as banks had not
reduced their momtgage rates.

Building society lending con-
tinued to run at record levels
in May and monthly net receipts
were at their highest ’for atj
least 16 months. Societies are
thus under little immediate
pressure to change their rates.

Building society figures f<jr
last month are due to be
published on Friday. These are
expected to show that societies
have promised about £4.5bn to
borrowers in fee past three
months. Net receipts of £4S7m
in April were the highest since
January 1981. Returns from
leading building soefetir*
indicate that receipts for May
might have bee neven higher.

£ in New York

June 7

Spot

Previous

SJ.7B75-7990j 51.7S85-7B<15
2 month j0.3S-O.38 pm- 0.22-0.26 pm
13 monthajO.94-0 .99 pm; 0.80-0.85 pm
2 monUlSi3.es. 3.3 5 pm 2.95-3.05 pm

Port Stanley almost sealed off

BY BRIDGET BLOOM, D&ZNCE CORRESPONDENT

BRITISH forces are believed to
be well on their way to- sealing
off fee Argentine garrison in
Port Stanley. It was confirmed
yesterday feat fee hills to the
north of fee Falklands. Islands
capital have been captured by
British troqps.

According to figures released
today some 9,000 British troops,
including Royal Marines, para-
troopers, Guards, Ghurkas and
support troops', have been
landed on the Falklands.

’• Not all of these are yet
deployed in, the Port Stanley
area, but correspondents wife
the task force say troops have
been arriving over fee past few
days to reinforce those estab-
lished for fee last week on and
forward of Mount Kent, which
controls the coastal plain to
Port Stanley.

Yesterday defence officials

FALKLANDS WEATHER:
Cloudy and cold. SW winds
force 6-7 with 10-12 ft seas.
Temp upper 20s. OUTLOOK:
Sunny and cold. Winds
westerly force 6-7 with 15-12 ft
seas. Increasing cloud. Temp
low 30s.

confirmed that British troops
have outflanked the Argentines
to the north of the capital and
almost certainly control the
hills of Mt Longdon and Wire-
less Ridge.

The Defence Ministry con-
tinued to allow what operational
news there is of the campaign
to come from correspondents on
fee spot

Yesterday, .despite' persistent
reports, it was unable to confirm
cither feat Majo&General

Moore, the land forces com-
mander, had ordered surrender
leaflets to be dropped, or that he
bad spoken by radio to Gen
Mario Menendez, fee Argentine
' commander, urging him to
surrender.

• A Liberian-registered,
American-owned supertanker,
the Hercules, radioed yesterday
that it bad been bombed by an
unidentified propeller-driven
aircraft 480 miles north east of
the Falkland Islands, the U.S.
coast guard reported.

No details of the exact
damage or casualties aboard fee
1,067 ft tanker were available.
The tanker- was bound for
Alaska ‘but is believed to be
carrying no oil. The Ministry of
Defence said no British aircraft
took part in fee attack.

Falklands crisis. Page 6

CONTENTS

Britain's miners: Scargill prepares for-
battle 18

The French economy: Mitterrand’s un-.

palatable choices 19

Unemployment: getting beyond .glib

talk 19

Technology: Daimler-Benz sophisticated '
bus system : 15

Gardens today: the hardy, dependable

dstus 14

Commercial law: intention insufficient

for legitimate last voyage 14

Management: U.S. industrial group
removes demarcation barriers ...... 16

Editorial comment: Middle East; SDP

and pay polity i, 18

Energy review: Whitehall dull ■ over
renewable sources 24

Survey: West German banking and
finance 19

Anwteur News ...

Appointments

Art* ■ !

B«m Rates- — ,

CtommoditiM ......

Compantet UK

Crossword ....
Entertain. Outdo ...

European Newa
Euromarkets

FT Actuarial

OoW Markets

8

24
17
14

25
20-23

17
. 17

2.3
" 26
31
2S

Inti. Companies ... 20-29 Stock Markets:
Leader Pape 18 ‘ London

Latter* ™ . W * M •••••

I®, '36 Bout***

London Opt* 23 Technology

Menasement .16 TV and Radio

Men A Matters ... IB UK News:

Mining 22 Ganoml

Money Markets ... 32 Labour

Overseas Mews 4 Unit Trusts:

Parliament 12 Authorised .....

Reoing 14 Others

Share Information 34, 35 1 Weather

For latest- Shore Index phone 01-246

31
30
30
15
14

9,10

.12

32

33
36

8026

. World Trade News 8

INTERIM STATEMENT
Carr's Milling Inds- 22

ANNUAL STATEMENTS
Aberthaw Cement 21

Bristol Waterworks 22

British Invest. ... 23

Capper Neill ....... 20

Cater Aden Hides. 22

Honkkisons Kldga. 23

Tysons (Con tract. I 22

PROSPECTUS ADS.

Midland Bank 23

McCarthy & Stone 23

CONSTRUCTIVE

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Wheel Loaders.

A wide selection of OH-Kflghway
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Slag Dump Trucks.

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And offers Motor Graders..

Vibratory Holers.

Diesel Generator Sets.

Portable

Air Compressors.

A wide ejection of
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Machine Tools.

Mechanical and Hydrat* Presses. A variety of Maypres Presses. OBS Power Presses. Tlmnef-BorinS Machines.

V&tb constructive Vi other waya. We .offer castings, foundries, and important advice on ajnstna^andtnanufsduring projects.

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OPE AN NEWS

Pinaiicial Times Wednesday . June 9. I9£2 > j

. .. .. • • •*-..•** ' - **= . .*•; *■**; i ... -J5

UK and France

t ' ’ '

close to accord
on fishing rights

BY LARRY KLING&R IN BRUSSELS

BRITAIN AND France are on
the verge of settling their long-
standing dispute over fishing
rights in British coastal wafers.

If the talks are finally success-
ful, they could remove the most
acrimonious stumbling block to
the establishment of an EE C
common fisheries policy (CFP),
a goal that has eluded the Euro-
pean Community despite six
years of almost continuous
negotiation.

. Following months of diplo-
matic activity which culminated
in Monday’s meeting in London
between Mr Peter Walker, -the
British Fisheries Minister, and
his French counterpart, M Louis
Le Pen sec, both sides acknow-
ledge that their talks have “at
ljiEt borne fruit.”

*■ While refusing to commit
themselves publicly ahead of
discussions within their own
governments and with their re-
spective fishing industries,
officials acknowledge that, on
the ministerial level, all the
iseriods hurdles have been
cleared.

; Agreement on the “access”
question, however, would not
g uar antee the establishment of
CFP. Still outstanding would
be the question of the share-out
of the available fish among the

meat between Britain and
France, no CFP would be pe£
siMe.«* , ■ i

Pressure for agreement has
been growing steadily as the
December deadline approaches
for the expiration of Britain’s
transitional fishing arrange-
ments following accession -to the
EEC 10 years, ago.

France, supported by con-
siderable EEC legal opinion,
maintains that, when the tran-
sitional arrangements expire,
fishing in ell Community waters
would be open to all Community
fishermen.

Britain, whose coastal waters
hold more than 50 per cent of
the EEC’s most valuable fish,
.maintains that its current ex-
clusive six-mile coastal limit and
12-mile zone allowing only
Limited “historical rights” to
others would remain intact if
nothing was put in its place on
an agreed EECwide basis.

Clearly, without a resolution
of the problem before the end
Of the year, another EEC con-
stitutional crisis could be in
prospect, similar to the recent
[form prices diaputein which
Britain's veto was overridden
by a majority of the member-
states.

The European Commission

U.S. gloom
over steel
exports
agreement

By Richard Lambert In New York

EEC member-states, an issue will this week take up the ques-

Which involves not only Britain
and France but Denmark, West
■Germany, Ireland, Belgium and
the Netherlands.

.. Nevertheless, without a gree-

ts on of new fishing quota pro-
posals to present to the EEC
fisheries ministers when they
meet in Luxembourg next Tues-
day.

Comecon summit opeus

■ BUDAPEST — Mr Gyeorgy
■Lazar, the Hungarian Prime
■Minister, told the Comecon
^summit which opened here yes-
terday that the “most reactfon-
ary circles of imperialism ”

'.were “trying to freeze mutually
•advantageous East-West econ- Eastern Europe.
'01010 relations.” AP-DJ

Although he did not mention
the United States by name, he
was ' referring to attempts " by
President Ronald Reagan to
persuade the Western allies to
impose trade and credit restric-
tions on the Soviet Union and

THE PROSPECTS for read-
ing a negotiated agreement
with Europe on steel exports
to the U.S. were ** extremely
slim,” Mr BiU Brock, tile U.S.
Trade Representative, said in
Washington yesterday.

-Mr Brock's comments came
two days before the UJ5. De-
partment of Commerce is
scheduled to give a prelimi-
nary ruling on whether car-
. bon steel exported by Euro-
pean companies to the U.S. is
being, sold at unfair prices.

Thursday’s decision Is re-
garded by the U.& steel com-
panies as a' crucial event in
the unprecedented assault
which they launched on steel
imports earlier this year. -

Around 40 per cent of U.S.
steel imports are subject to
complaints - alleging unfair
pricing either due to .govern-
ment subsidies or dumping.
Thursday’s decision will cover
the basic ' steel anti-subsidy
cases, which form the bulk of
those in question.

In the past few days, there
. have been suggestions of a
last-minute attempt to reach
a voluntary agreement be-
tween the tLS. and the Euro-
pean producers in order to
avoid what could become a
serious international trade
issue. .

But Mr Brock said yester-
day that talks between U.S.
trade officials and Europeans
to work out an agreement to
avoid the need for a Com-
merce Department ruling
were informal and not what
he Would characterise as
negotiations.

If the Commerce Depart-
ment finds that steel imports
are being subsidised by for-
eign governments. Importers
will have immediately to post
■ bonds covering the alleged
subsidies. The preliminary
findings wOi be subject to
final ratification by the Com-
merce Department and the
U3- Trade Commission later
this year.

SOCIALISTS GAIN MOST IN LOCAL ELECTIONS

Big Italian parties see support ebb

BY RUPStr cjoRMVlvELL W

THE LATEST ^und of Italian were also scored by the other, ministration. 'employers^ associataon. to pull

elections hap provided further smaller “lay” parties in the pre- The position of the Prime out of the agreement wn The-
proof of the. inroads that the sent government coalition— the Minister himself has- probably Scale Mobile system '‘of. wage

Socialists
centrist
the Vote of
crats and,
Ci

country’s

their smaller
are making into
Christian Demo-
i all, that of the
traditionally the
dominant parties,
feend’s voting in
900,000 people, .
up. and down

ottered

Last
volved

in. towns

the country. Although the figure
represents barely 2 per cent of
the total national electorate, the
consistency of the trend- makes
the outcome a .useful pointer to
the country’s political mood.

The biggest victors were the
Socialists, who increased their
strength in towns of more than
5,000 voters (where results are
decided on a proportional basis)
by around 4 per cent to almost
14 per cent But significant gains

Social Democrats; the Liberals,
and the Republican Party
headed by Sjg Giovanni Spado-
lini, the Prime Minister.

The Christian Democrats and
Communists both lost about 2

been strengthened.' But the key * indexation- Italy’s - three biggest
will be Kbe attitude of Sig unions yesterday^ confirmed A
Bettino Crass,- Che- Socialist one-day general strike. In .prth
leadfer whether the results test, to be kelff fan June -25. :
incline him - th press for - a On both issues,- divergences
general election as soon as have been evident' between the

per cent of their support But possible, with the aim of cash- Christian Democrats, v&*> ; are

tne F ITyl OX cagiJ- vunauita -ueuwonna, - . ai.'i

the latter in particular must be hig in on has party’s current broadly in favour of a, tougher

deeply worried about their par-
ticularly poor showing in the
South. In Castellammare di
Stabia, close to Naples and
regarded as a reliable pointer
to trends in the South in
general, the Communists lost
around 5 per cent of the vote.

In national terms; the outcome
could weigh upon the meeting
soon of leaders of the five coali-
tion parties, which will becide
the immediate future of §ig
Spadolini’s 11-month-old ad-

populartty, or to hold off (per-
haps until next spring) in the
belief that the tide has yet
further to run in bis favour.

The early indications are that
he may prefer to wait. Never-
theless, - economic problems
could cause the meeting to be
tense. A forthcoming series of
measures to cut spending and
boost . Government revenues
could arouse controversy.

■ Another factor is the decision
by Confindustria, the private

line,-, and - the Socialists,, .who
are anxious to avoid responsi-
bility for: harsh economic deci-
sions, uhSfikely to.be popular
with the electorate: .'

Last night* Interalpd. the
association of pubkc employers,
was . due to announce-, its own
stand - on whether to begin
negotiations .for three-year
labour _ contracts, and* whether
to follow - Confindustria’s ex-
ample and '.withdraw' from toe
Scala Mobile.

mPdiaj&t

3rf Chrislnpha- Bbbtmld
! in Warsaw 1 ■'?

Nuclear power scheme takes step forward

BY JAME5 BUXTON IN ROME

ITALY'S DRIVE to construct a
se ries o f nuclear power stations
to stave off the alarming pros-
pect of power shortages
towards the end of the decade
has taken a modest but signifi-
cant step forward.

The regional governments of
Lombardy and Piedmont, two
of the three regions asked by
Rome to designate .Bites for the
proposed power stations on
their te/ritory, had done so by
yesterday’s deadline, set six
months ago. A third region,
Apulia in the south-east has
failed to do so, partly because
of a political turmoil in its
ruling council.

Any region that has not met
the request for the designation
of a gossible site— which must
be chosen in accordance with
the national map of seismic
data— can have the choice made
over its head by the central
Government. But such a step
would only be taken if it . were
considered politically oppor-
tune.

The designation of a rite is
only the start of a lengthy
process of obtaining further
approval, though it means that
detailed tests on the site itself
can now take place. The next

ITALY'S campaign to attract
tourists, and with them
precious foreign currency,
moves Into top gear this week
with the re-launch of cut-
price petrol coupons for
foreign visitors, coupled with
the introduction of special
redactions in motorway tolls,
writes Rupert. Cornwell.

The package is tailored to
provide particular benefits
for travellers to poorer
southern Italy. The total sav-
ing could amount to L78.000
(£33), with the guarantee of a
free emergency breakdown
service.

All tourists arriving by car
will be entitled to colons
granting them a L150 (6p)
discount on up to 150 litres
of petroL The advantage will

be all the more welcome in
that petrol prices here are-
set to rise this week from the
present level of L960 per litre
(£1,80 a gallon). In addition
they win receive coupons
worth L10.000 (£424) off
motorway fees.

Those journeying south of
a line from Rome: to Pescara
on the Adriatic will be
eligible for an extra L16.000
(£6.77) of motorway - toll
redactions, and . op to an
extra 200 litres pf ' cheap
petroL

The facilities wffl be avail-
able at frontier paste and
tonriGt. offices inside and out-
side Italy from tomorrow.
The authorities . hope -they
.will help ensure, a bumper
tourist season, after a
generally disappointing 198L

crucial stage, is to gain the firm
approval of the local commune
or municipality covering the
site.

Theoretically, this process
should fake a year and a half,
to be followed by the start of
construction. It is reckoned that

seven yeans will then be needed
for the completion of the plan-
ned 2000MW pressurised water
reactor plants. .

Obtaining the firm consent of
the commune has been a
serious stumbling block,
recently holding up the con-

struction ttf'.a 'plant norffi of
Rome- for nearty Vo. year after
rite ■ preparation, had begun.
But ". opposition- yio : nudear
power has become less strident
lately, - tending - to; concentrate
on issues of .compensation
rather than of principle. .

. The. main political parties in-
creasingly have inclined - to
favour * nuclear power, acknow-
ledging its attractions for - a
country that, lacks, significant
resources of ell and coaL "

Italy . relies on; oil— -almost all
of it imparted— for 67 per cent
of its energy needs, against an
EEC average of 55. per cent
Nuclear power provides an
almost negligible proportion of
its. energy needs, from only
three functioning plants.

Because of the failure to
commence the » building . of
nuclear, and ooal fired power
stations, ' Italy.' has suffered
several winters .of power --cuts
and reductions^ The situation
wfil improve is the next . two
years as plant comes on stream,
but will then deteriorate in the
second taH-of the decade, since
only one large . power station
has been - commenced since
1974.

t; r

•5

.(

New Issue
June 9, 1982

Ths advertisement
as a matter of

only •

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Oslo/Norway

DM 100,000,000

8 56 % Deutsche Mark Bonds of 1982/1992

Offering Price:
Interest:
Redemption:
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Frankfurt am Main •

Deutsche Bank

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Oslo Government wins
backing for policy change

BY FAY GJESTER IN OSLO

•i:

NORWAY’S miDority Conserva- —would saddle tie state with, a

trve Government has won
namwir Parliamentary approval
for an industrial project which
represents a significant change
of policy from that of the
previous Labour administration.

Parti ament voted 79—76 to
cancel -plans to boLld a state-
owned aluminium plant in'
Tyssedal, where an obsolete
smelter was scrapped several
years ago. But in order to
provide work for some of the
200-strong labour force pre-
viously employed in aloxninium
smelting; it approved the
Government scheme to build
an ilmenite smelter which will
make titanium and pig iron.

loss-making enterprise which
would have to be subsidised
because of its vital role as a
provider of jobs in a small com-
munity. Norway - already has
several of these, all based, on
cheap hydroelectric power.

The ilmenite plant will cost
less, use much less electricity
and make products for which
there is a. better market Alum-
inium smelters in Norway are
losing NKr 1,000 (£92) on every
tonne they produce because of
world over-supply.

The government feared that
another aluminium plant — in
addition to its high InitiaL cost

Hie local, state-owned com-
pany, has a “right” to the
amount of cheap electricity
which an aluminium smelter
would have used as an ilmenite
smelter, therefore it will, be
able to sell its surplus power.
This will also improve the
economics of the project.

•The Labour Party and itsr
parliamentary ally, the small
Socialist Left Party, claim the
Government has betrayed the in-
terests of the local population.
They point out that an ilmenite
plant will provide only 177 jobs,
compared with 262 for the alum-
inium smelter.

An MP of the far right
Progress Party said both pro-
jects were just job creation ex-
periments at the taxpayers’
expense-

Portugal’s MPs
set time limit
for constitution

By Diana Smith In Lisbon -
AFTER’ A week’s haggling, the'
Portuguese . Parliament has
agreed -to devote 'iQ5» boersr to
derating proposed alterations to.
the 1976 constitution.

Only when the constitution
reviewed and the Military Coun-
Cffii of the Revolution is dis-
banded, in be replaced by a
evtiian Council of State and
Constitutional Tribunal, can
crocial supplementary legisla-
tion be. introduced, re-opening
banking and insurance - to
private capital,

The ' Communist Party,
opposed to any liberalisation of
the SocaaHst-inspdred: constitu-
tion. wanted no time limits for
the debate because of their vital
importance.

As It is, the reforms— for
which all eight parties repre-
sented in Parliament have
offered proposals— are months
overdue. With an extension of
the legislature into late July,
they could be discussed and
voted on before the two-month
summer break, but the proceed-
ings so far. have been so slug-
gish that this may be over-
optimistic.

.THE POLISH CHURCaasM^
state-authorities have ei
a visit by ■'the Bope tb Pi
AugusfcV V.‘

. After a meeting yeafcesday
Warsaw,; senior - Pofish, b&hopp
issued ~ a. -communique' ; saying
they “ jpyously VTepeat -
invitation -To the Bbpe fo tfc
600th' ahmvmsaiy , celefeatfam
ini Czestochowa th3ir^Angtut?>.

. This ’^dedsfoh _'was’ : convey^ 1
to the Polish authdriti^s' at^t.
church, and state meelingrvrii^
began at the partlamfeit btriu.:.
ing soon. ' after' the; bfettap^'.-
meetiaR '‘ended. The'^iiittKKititt'
are; expected- td ; - ^proye- fia
visit ■ 7 - r ; ' tV-W '"-*-:

Appara>tiy bo&' sidea^'b^
agreed that the Pope jsbould^ .
to Czestodmwa, taiti.ibe -jBp.
gramme ’ is stiRf^ehtnti^aod
will depend. on> - 4

developments. ; ! . “ y: • '’•?< * r

The ; -vasife ■ became I- pootipS :

jot

V

'■V

'..-t

Vjii.

w

. ii 1

It

■ L <- I 1

r*j? f

'A?

■ 5 v

after tiie Pope decided 4 U ..
both to . rtbe UK.abd
doaai&e tire

despite tire oontirot hettween iihe
two ■ comrtrtes. V: ' ,-..^4 *■ j £ i

mje.JVrtSh

empbasfi^ng the pastec^la^coft *. i- ^
of -.the yisfit, and fiwi . jwei^K
set by ihe visit

Argentiaa toeans-^hat he’/^sp'be ^

able., to keep contacts.; .
Poland's martial lftw'autiwc^ws; v
to a nrinhnum. ' ■'J r . • :

The proposed -visit ,
a' hew dimension' -foV.Paki™jv,
Ttttiter stagnant, political. iSdfc,
and strengthem the : teLnd iff ^ >
church in its relatiims with the t
authorities and its .Command- of
popular attention. -

.The visit weakens harnffiaiti l
far - ' the'' estab lisbment" 'argidng ;
for. for a. policy of' no'lconce^
si ons 2s ' well as radira&L’ iB
Sotidartty pres^hg for :
frontatfon' • with . the.- rGoveni- -
burnt. . ' •" i . v •; i-.-?* f.i -

General Jaruzetefeifc ', martial •
law adhunisation ^ no _ t
re g ar ds with ^ ;

prospects of the inassed qcowds j
out ; • tp,, see the Pop& /?ml .
evideattr -the notion- that -file
visit win “• confer [■&-- foria'^ o? , -]
respectability: on the , 're^mie "
bite outweifih^d. those ;

Also, the authorities >

doubt have been 'artracted’-by
the effect . the-^jsSt canMVhflro ,
on Western ; policy .towards t
P otenri, espedajiy as news. M
the trip comes In ,tbe w e&jft
the Nato siinmnit and President
Reagan’s .tour of Europe. ; ,
*v^-The Popb will be ooming lp
celebrate the annaversasry «f toe
Arrival of the! plcture- iff the
Black /Madoima ati' jPohtodh
national j^irine. toCzestoehowa.

• If , there is a^ eharp deteriota :
Mon in the political - sihtatioa, .
then ; course^ the visit

beewpe impoissibfe; , This; con? :
viction wiH no doidJt ndd vagooi 1
to the efforts of. the. church and '
moderates '.in .the party -leaded'
ship : like Mr- Rjamien
Bardkowski .to . ■maintain .the- 1
social peace And start' talks on a
national accord before August

The church, too, will ndvr no
doubt launch a programme pro
paring the faithful fbr'fffa-ybat
which the radfeak wRl -avoU
disrupting with calls - .v for
demonstrations or strikes.

In a reassuring signal to the
Polish airthorities. the Pope
made ' . Bishop . Bron^aw
Dabrow^ki . secretezy of: the
Polish bishops’ conference. He
has been responsible for .cop?,
tacts with "the' authorities .
many years. . - . 1 .

r

.ti

trlr-

Mi'

Hil

n

•f’V

s’? 1

.y.K

~-r\

. 3 ? &

*k:h

I*

aiii

lUter

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! ' J '

K na a c ia l Times -Wednesday June 9 1982

EUROPEAN NEWS

ahead

°Pe’ s

Economic

outlook

Dissension in the ranks of West Germany’s peace movement

BY IAMB BUCHAN IN BOHN '

®. chu*,.

v<?rs arv

Mfa -J,

I,

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for Dutch

By Watter.SttF toAm*«*nboi

- THE Netherlands’ Economy is
going titora iutll fast,! Mr Dries
van A gt, the Prime Minister;

,-jtoW> -PariSament yesterday,
promising, urgent - remedial
faction. His pessimistic outlook
. ■' is conftrm'da by ffie latest report
„;of the Dutch Central Planning
‘.jaiureau, . which . expects un-
^eniploynient to rise again this
J.xear. :* It also forecasts stagnant
^.-industrial production, a rise ‘in
- n T ‘jwages?«bove tie projected rate
- -of inflation. arid a decline in
rt , IheT. standard , of living.

V - -The Bureau says unemploy-
^ naent could reach 525.000 this.
r year! or more, than lO-oer cent
* T -of- -the workforce. Prices are
Jo- likely 'to rise by 5.5 -to 6 per
cent and wages by an average
of 6.5 per cent '
Tbevateof productivity gmns
...ia -the Netherlands-; has - been
■ ■ declining for some time, and
the'.- Bureau: foresees little
: change • In this pattern l this
year. Exports, it says, could

- •push up manufacturing output

- ■ by 2 -per cepL . Construction, .
5. however, should fall by 3.5 per
^cent. - and there Could also be a

drop in the level ; of energy
-optoduction. - ;.- .

t J " in the Bureau's opinion, wage
rises, though above the level of
• ^flation. -wlll not be enough to
’'compensate, for huge rises in
"•'social- !•’ security contributions,
e." the current 0.5 per-.cent employ-
ment surcharge on income tax
^•and cutbacks in family • allow-
a ranee — ell brought in within the
-jjlsstyear. ■' ■

Jj f Turning to company perform-
te Bureau perceives some
1 recovery of the very, low fate .of
^.^Tporate profit? bflity, but- rinks
D^this to the continuation -of low
^7* crest rates. It sees private
T'-j? ^sumption uf ailing ' by i .per
corporate . investment - by
per cent, housebuxldin-g by 3
Per cent , and goyermhent spend-
r<rjj 2 B£y - on capital projects by 1.5
^/per cent. “ ' - ' '

aiLV. Export .performance is ex-
^'pected - to . remain good, with a
??jprojected 2 per cent increase
keeping the country instep 'with
P the general trend in world trade.
3~Xhe rise, according to the
Bureau, .wifi take place despite
r \ a 12 per cent; fan in the volume
y 4 of h>ttural ga& ^exporteid. 1 .

THE T gpff T flERMiOf federal-
'capital' of Botin; a TO'rpid dty of
functionaries and pensioners, is
wearing -an unusually haggard
j^air ,a$ :it\ prepares for today’s
I arrival ' of President Ronald
Reagan .and for its first' ever
summit meeting of Nato heads
of- State and gwernment
..It is also a city of. coalitions
where nothing is done withqut.
lehgthy bargaining and a truly
monstrous volume -of documen-
tation. There is the Coalition
Government, which -has jnst
suffered losses at the Hamburg
by-election which would have ’
floored v politicians less inured
to compromise; and then there
is the peace movement, a coali-
tion of no fewer than' 1,S30
groups, which plans to mobilise
some 200,000 people on Thurs-
day against nuclear rearma-
ment, the policy of the alliance
-and .President: Reagan's defence
build-up.

President Reagan will prob-
ably see little of tbis army of
peace mongers as his delegation -
is ferried about/ in' weU,-
chaperon'ed groups, from air-
port- to Bundestag to banquet
and- bade again The Bonn
police, have insisted that the
demonstration be held, not in
the Hofgarten in Bonn itself
whore -the last great peaceful
show of strength todk place last
October, biit across the Rhine
in a park originally designed .
lor i horticultural show.

The ■ Premdent may . hear
occasional catches of speerires
or singing;' but the predominant •
sound blowing over the river
could well be that of wheedling
mid dissension. For the 4< new”
peace . .movement, which
gathered force last summer and
mlmin afad in. a 250,000-Strong
rally last’ October Id, can feet
if* htrength but • does not yet
know quite what to do with it

“ There '4s abthing surprising
in. that,”: says Herr Jo Leineu,
one of two . main spokesmen of
the’ .' committee " organising
tomorrow^ demonstration. “We
are, after all, a coalition.”

The West German peace
movement is an extremely
heterogeneous mass, reflecting
origins - as diverse as the
“green"-. ..movement of
ecoiogists-in the 1970s, women’s
rights, the protests of the 1960s,
the anti-bomb rallies of the
1950s . end * ultimately, through
-the churches; the anti-war move-
ment of the -Weimar Republic.
The demonstrators tomorrow
will! even include disillusioned

Reagan visit worries West Berlin

CO

op

Group

: in base rate

From 13.00% to 12.50% p.a.
On and after
Wednesday, 9th June
. 1982

Deposit Rates will become: ^
7 day deposits 950% pa.

1 month deposits 9.75% p^i.

Short

q y i

T

t

Dm 10.

to

12.10% p.a.

nount&term
& 6 months)

First Co-operative Finance Limited
Cheque &5ave current notional
interest rate is 9.00%- : . v

FOR DATS Herr Richard
■ von Wetesaecker, West
.Berlin’s governing Mayor, has
been urging West Berliners
to give a “heartfelt welcome**
t* President Ronald Reagan
-who,, he said, was coming to
.Berlin to “get to know us
.better,** writes Leslie Colitt
.in Berlin;

Mr Reagan said recently he
was anxious to learn the
motive of those people who-
were planning to demonstrate
against him on his trip. But
.neither welcomers nor pro-
testors will get very close to
the President who will begin
what seqirity officials call the
most hazardous portion of his
European trip when he
arrives- in West - Berlin on
Friday morning.

More than. 180 groups plan
to- hold a massive rally
tomorrow, parallel to the one
In. Bonn, against Nate's

former, officers of the Bundes-
wehr, such as ex-Gen era 1 Gerd
Bastian — a talisman to the eager
young people around him— who
seems to argue that since nobody
knows how the Soviet' Union is
interred it would be worth
'examining deterrence at a much
lower level of armament.

One goal upon which prac-
tically all of the demonstrators
are agreed is to prevent the
deployment, starting at the end
of 1983, of new UB.-medium
range nuclear missiles in West
Germany and four other
Western European, countries.
Deployment will go ahead if
there is no progress made- at
talks on ; Intermediate-range
Nuclear Missiles (INF) between
the UB. and the Soviet Union in
Geneva.

“ We are all agreed on INF, 1 "
Herr Leiner says. ** and
probably <also on a nuclear-ffee
zone in Europe. Beyond that,
weil,” and his voice is lost In
the rattle of typewriters and the
chaos of excitement of the peace
committee’s office.

The -differences are manifold
but chiefly concern the attitude
to be taken to the Soviet Union,
and its build-up of weaponry,
notably the 200 and more SS-20
intermediate-range missiles
installed since 1978; the special
position of West in relation to
East Germany, where an
analogous peace movement has
been heavily stamped 'on: and to
wgat extent the peace move-
ment should be held back from
an avowed anti-Americanism
reminiscent of the time of the
Vietnam war.

Matters came to a head at a
meeting to discuss tomorrow’s
rally in April in Bad Godes-
berg, an. even more stolid town
just upstream from Bonn.
The Protestant church and the
ecologists,' including the
Greens, who formed a federal
political party in -early . 1980,
strongly resented tie concen-
- tration . on U.S. iniquity and
what they considered- to be
packing of the meeting by the
1 orthodox West German com-
munist party (the DKP), and
i other Marxist groups.

“They played only a tiny role
' at the October peace demon-
stration," said* Herr Lukas
Beckmann, one of the leaders
of the Greens; Tttf Greens
insisted on having speakers
from East Germany and with-
drew from . the demonstration
and refused to sign the declar-
ation They have now.agreed to
take pan again.

Other peace groups say that
the Greens, with 25.000 mem-
bers, were merely angling for
the votes of respectable citizens
and have been rewarded by
their dazzling- success in the
Hamburg election last weekend,
where a - Green grouping
emerged as * third- strongest
party. ' Indeed, their heads-
quarters in Bonn, neatly
squeezed between the Social
Democrats and the Christian
Democrats. Is r scarcely distin-
guishable from these political
barracks except that the
Greens’ lawn is left 'U run own,
in organic profusion.

Herr Beckmann denies these
charges. The Greens have
accepted the demonstration’s
manifesto but added a rider.
This takes over the symbol of
the East German peace, move-
ment. Swords ' into Plough-
shares, bat adds “ in East and
West” '■ The best hope for our
aims is a dismantling of the

The Royal Bank of
■ Scotland pic announces
that With effect from
close of business on 9
June 1982 its Base Rate
for lending is being
decreased' from 13 per
cent per anhum ; to 124 per
cent per annum.

charttaWe^ving

ffeu ind i viduals and coropapisa
a Ctf dteeHnpMy covgaanfc

jgtaac-e fflfcjgntapd fkgRflB."

AH dematidns can be covered

decision . to introduce new
UJ5. T F^ Mr missiles to West
Germany.

‘ The city's Far Left Alterna-
tive List <AL) party applied
-for permission to demon-
strate on Friday outside
Charlottenimrg Castle when
President Reagan is to speak
to 20,000 . invited West
Berliners. The- police, how-
ever, said the rally outside
could not take place until the
President had left Berlin at
2JS0 -pm. • The AL has
promised to “stage imagina-
tive '• peaceful ' actions - " to
undermine the Mayor.

. West German and U.S.
security officials speak of
“violent elements” from all
over West Germany, converg-
ing on West BerHn for the
President’s visit. The West .
Berlin police force, which is
mobilising its. . voluntary
section for the first time, has

great power, blocks,” JJerr
Beckmann says.

Another group, Action for
Reconciliation. which was
strongly involved! last October,
has withdrawn entirely because
of what they bedieve fs an anti-
•U.S. slam.' '

' Herr Leinen insists that the
demonstration is not designed
at the person of Ronald Reagan,
but tnat a Nato .summit is a
Nato summit and the U.S. is its
greatest power. “I expect the
movement to take a much
greater interest in the numbers
and details of Soviet nuclear
armament in the- next months,”
he says.

Nevertheless,; the demonstra-
tion's manifesto holds closely to
the Soviet view over what, in
the field of intermediate-range
missiles, ought to be negotiated
at Geneva and the movement
accepts the -Soviet contention of
Nato superiority.

had practice in clearing the
streets of demonstrators. At
a parade on the recent Allied
Forces day demonstrators
who ventured on to toe
boulevard were dragged into
.Immediate custody by . the
not-always gentle riot police

For weeks the police have '
been removing slogans such
as “Reagan go home** and
much more explicit exhorta-
tions from building walls.
Anti-Reagan stickers have
been impounded,' along with
a tape containing battle
sounds which was allegedly
to be played in public on
President Reagan’s arrival.
Such pre-emptive measures
were carried out without
regard for legal counter-
action under* two Allied
orders dating from the 1950s
which ban publications con-
taining “derogatory remarks”
about the occupying powers

“From the frying pan into the fire with Reagan ? No.” A poster in West Berlin promises the -

leader a hot reception

Apel urges that detente policy be continued

BY JONATHAN CARR IN BONN

WEST GERMANY has urged
that the policy of detente with
the East bloc be pursued despite
setbacks, and stressed that it
would suffer most in any future
European war.

Herr Hans Apel, the Defence
Minister, makes these points -in
an article published today— on
the eve of the summit con-
ference here of the North
Atlantic Treaty Organisation..

He stresses that the alliance
must not neglect its conven-
tional forces, so. that it can resist
attack from the East effectively
without early resort to nuclear
weapons. He also points out.
however, that a key hope . of

detente is that it will help
achieve through negotiation a
rough East-West military
balance at the lowest possible
level of force.

One of Bonn's principal aims
at the summit is to gain en-
dorsement of these two prin-
ciples — military . preparedness
and detente — from ail partici-
pants, including the United
States.

The West Germans are likely
to gain what they are after,
although the word “real" or
“ genuine ” may be inserted
before the word “ detente " at
the urging of Washington. •

The ** Bonn declaration ” of

Nato could then be used by
West Germany as implicit back-
ing for a continuation of its
Osfp oI *rife — not least of its
efforts to improve relations with
the other German state.

In his article Herr Apel
stresses that all Nato states
share the burdens and risks of
the allaince, but that if it comes
to a war then West Germany
will be the battlefield.

Even neighbouring states
like France and Britain — let
alone the U.S. — are in a more
satisfactory position than West
Germany, although they have
their, own troops on German
soil, Herr Apel says.

While supporting mainten-
ance of Nato’s conventional
strength, the Minister al£b
speaks out against. the recent
suggestion by former hight
U.S. officials that Nato formally
renounce first use of nuclear
weapons to halt a Soviet conven-
tional attack.

This proposal, says Herr Apel,
would imply an actual strength-
ening of the West's conventional
forces. Even if all member
slates managed to achieve the
Nato aim of an annual increase
in defence spending of 3 per
cent in real tens — and fewer
and fewer seem able to do this
— the necessary troop strength
would not be achieved.

TAK5ADV3GSFBC&£

4SPembuiy Eoad, TcnihEid^Q,
. KantTET92JD.

' Telephone: (0732) I&6525

Hong Kong:
opportunities for
British investment

Hong Kong is one of -the world's fastest-growing economies —

• ' and it offers unrivalled opportunities for British trade and industry.

Per head of population,-Hong Kong ^ Britain's biggest customer,
a shop window for British products in Asia and the Pacific. It has spent
over £400 million on British-made underground trains, locomotives and
electrical installations, ordered 19 ships from British shipyards in the >

* last two years and bought over £100 million worth of Rolls Royce
• engines for its aircraft. -.

Over the next decade Hong Kong plans to spend some £1 0.000
million on new town developments, a new international airport and
other major construction projects like road tunnels and bridges.

But that's just part of the story.

New Horizons for Industry

In recent years, more than 400 overseas companies have invested' .
in a wide range of Hong Kong industries including top quality, high-
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. . . * . - There, is ho great secret to their success..

>• Hong Kong is a progressive trading centre at the heart of a

dynamic regional market place. It offers political and financial stability, a
free port, low taxation, a sophisticated banking system; excellent
. international fransport and commun/cations.farilities; a wide range of
''•••’ transport and service industries; first-class technical education; and a

• flexible, productive work-force.

• . Above all, Hong Kong offers enthusiasm, new ideas,

• V opportunities.- rewards.

Alert British companies have already discovered that setting up a
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The result: new orders, a sales boost for British components, job
opportunities back home.

: So If you are looking for new investment horizons,

look to Hong Kong. .

It can only be good for Britain.

HKDI

Hong Kong Department of Industry

4‘

i

OVERSEAS NEWS

' • ■ ' “ . ' _ * ■" ■ . / ■ . ' ^ ■!*/! - ■- ' >V'"_ t

'• \ ’ • • . '" r . v ;V r ; ft

Financial Tinj^ ; We3nesd^

• 4.

BY STEWART OALBY IN THL AVIV

SYRIA

'U i tt n E DAYS ■ ' after their
invasion of southern Lebanon,
there is stall' a wide gulf
between what tbe~ Israelis
appear to be doing and what
they say they are doing. '■ ■
Their ostensible objective is
to neutralise forces of the Pales-
tine Liberation 1 Organisation
(PLO) in southern Lebanon and
ensure that they - will never
again be able to sbeU the towns
and Kibbutzim in . ' northern
Galilee. To do this, the Israelis
have said, they will establish
a 40 km cordon sanitaLre along
their border. '

The Israelis say that the PLO
had some 6.000 to 8,000 armed
men in southern Lebanon,

together with about 300 field
guns, mostly 136mm pieces
-with' a range of 27.5km, and
15Sm guns with a nmge of
23.5km, along with BM 21
Katas hya rocket launchers and
mortars.

Before last weekend they are
thought to have had 80 tanks,
largely Russian-made T54s and
T34s. The PLO’s total man-
power strength in Lebanon is
put by the Israelis at 15,000.

Asked yesterday how the
campaign was going, an Israeli
military spokesman said: “We
are well on the way to knocking
out all the terrorist pockets in
southern Lebanon.”

He mentioned in particular

the concentration of PLO forces
around Tyre, -where there are
thought to-be L5O0 PLO men
and at Nabatiya. The campaign
would therefore seem to have
been a Hgbtning success.

- But if . the Israelis merely
wanted to destroy the PLO in
the border- area, there would be
no need to capture Sidon, 60 km
from the Israeli border, or shell
Damoor, 20 km further north.

Israeli hews management is
so ti gh t that the British
Ministry of Defence^ handling
of - the Falklands' crisis looks
wildly indiscreet. . Nevertheless,
jt is difficult to escape the
feeling in Tel Aviv that the
“Peace in Gafilee ■ 'campaign

is a much bigger operation >than:
anyone is letting on. The key,
question is, what -is.lts uWmette
objective 2. . sr.v ■ > V- ' - :

. It is not at afl clear the.
Israeli's measx by a 0 Jcn^buffer
zdhe. -. At r some- points, such ' as .
Sidon, they have advanced -well
over 40 km into' Lebanon; .in,
other' places, : .notably to . the
north-east^ where they might
come >Into contact with' the;
Syrians ..at-, .Kachalya, ■ they-
appear to have held back. .•

It 4s clear 'that ’ the Israelis,
have thrown in many- more’
troops than in the Litanl opera-
tion Sn -1978. piscotiheqtjes have
been dosed amd'-tiiere are
numerous-: advertisenteuts _.in

local - newspaper^, . canoeing
receptions -and parties : because
of Jthe situation; in .tiie-nbr^
Reservists- who 1 Were nttt ■ Ipoa;
vated dhri978 -havo beesi viaHed ■
up, ‘ according to: local Sports*

It/tfgB surprising ^ta^OTee

of anything less thad 26,606-men
had beeir
numbers, could- bei
60,000. Roads to the hpttit fefc-
terday, were, busy 'with miai atti-
matetial .makfng thetir- way; to
the front lines. J "i .

It Is probaWq that thelsn^QV '

TninTTTWrm objective^ is.' 'i

to clean but -a. limited 'are^jn.. '
the . south of LebapjoA- butitiie .
thorough destimctron.'cfrthe- - HX>'
infrastructure in .the xsoaBhtcj^: j ■.

Ran offers PLO likely to survive,

to Syria bloody but unbowed

*' ’ -

I V '

-. •

. •
'

By Louis Fares in Damascus and
Our foreign Staff in London

BY ROGER MATTHEWS IN LONDON AND NORA BOUSfANY IN BEIRUT

A top-level Iranian delegation
has arrived in Syria to offer
military help in stemming the
Israeli advance in Lebanon.

President Hafez al-Assad of
Syria held immediate talks
with Colonel Salimi, the
Iranian Minister of Defence,
Colonel Sayyed ShirazL, the
Army Commander, and Mr
Mohsen Bezai, who heads the
Revolutionary Guards.

The Iranian delegation
carried a message from Mr
All Khamenei, the Prime
Minister, in which he pro*
mtsed help In the struggle
against “Zionism, the battle
to liberate the occupied terri-
tories, and the occupation of
southern Lebanon.”

Although there is little
immediate practical help the
Iranians can provide, the visit
Of such a senior delegation
to Damascus is clearly in-
tended to contrast with the
attitude of some Arab states,
such as Saudi Arabia, which
have offered only condemna-
tion of the Israeli invasion.

The Iranian offer Is also
recognition of the snpuort
provided by Syria in the Gnlf
war. In part because of their
bitter ideological dispute with
Iraq, the Syrians have pro-
vided a steady flow of arms
and ammunition to Tehran
and have joined the Iranians
In demanding the overthrow
of Iraq's President Saddam
Hussein.

Iran has also presented its
latest military success in the
Gulf war as a step on the road
to freeing Jerusalem from
Israeli occupation. This has
not stunned Iran from accept-
ing military aid from Israel.

Mr Ariel Sharon, the Israeli .
Defence Minister, admitted in
Washington last month, that
“a small amount” ef military
aid had been sent to Tehran.
But he insisted that it did
net represent any wider
support for Iran in the war.

THE PALESTINE Liberation
Organisation is today fighting
for survival — a battle from
which militarily it will certainly
emerge mauled but politically
perhaps, rather less badly dam-
aged.

Already it is clear that the
Israeli invasion of Lebanon has
cleared the Palestinians from
most of their major bases south
of Beirut Although the PLO
has tended to organise on more
conventional military lines dur-
ing the past 18 months, there
is no doubt that as the Israelis
advance, the Palestinians will
revert to classical guerrilla
tactics.

individual groups of men. The
Palestinians will, of course,
have serious resupply problems
but they are well practised fa
spreading tihe locations of the
arms end ammunition' dumps. .

Khalil al Wazir, better known
as Abu Jihad, the Commander
of Fatah's Assifa forces and
deputy commander of the PLO
revolutionary forces, said: “We
don’t care how much land the
Israelis occupy, because our
euerrillas will continue their
hit and run operations, behind
enemy lines.”

The larger PLO formations
will now have broken up into
relativelv small groups, which,
though out of contact with any
headquarters structure, will
prove difficult for the Israelis to
flush out without a massive
military presence: .

These groups will probably be
able -to mount hit and run raids
against smaller targets, especi-
ally when the. Israelis halt and
try to establish a longer-term
military presence.

The initial Israeli advantage
of massive armoured weight-
artillery and air strikes is far
more effective against estab-
lished positions than against

During the March 1978
invasion of south Lebanon,
small groups of Palestinian
guerrillas -were still trickling
back into headquarters from
behind Israeli lines days after
the advance .had baited. One
group explained in detail how
the Israelis had been wary of
moving off the main metalled
roads, thus allowing the
Palestinians fairly free access,
especially at night, to the
surrounding countryside.

Mr Yassir Arafat, the PLO
leader, is thought to have at
-least 15,000 men directly under
YBs control, although it could
be as high as 20,000. No more
than. about 400 were killed when
Israel invaded in 1978.- The
death toll this time is certain to
be much higher but is unlikely
to be more than a small pro-
portion of total Palestinian
armed strength.

Palestinians concede that
their forces in south Lebanon
have "suffered a major blow.”
But one military expert in
Beirut predicted that the loss
of land in southern Lebanon was
“immaterial to the fate of the
guerrilla movement”

■ He ' predicted that the
guerrillas would be driven
^northward towards the Lebanese
mountains and the Bekaa Valley
where Syrian soldiers of the all-
Syrian Arab Deterrent Force
are in control, In addition to

some left-wing Lebanese militia
groups..

Palestinian officials maintain
that contingency plans have
already been worked out with
the Syrian leadership.

The escaping guerrillas will
remain a problem if ' Israel
wishes to impose its . own poli-
tical solution on Lebanon.

Many are likely to have
already fallen beck into Beirut
despite Israeli attempts to cut
the road north of Sidota. With-
out an Intensive and costly
street-bystreet operation, they
will.be extremely difficult to
flush out. Those that have moved
into Syrian-controlled areas are
also beyond reach, unless Israel
wishes a full-scale war with
Syria. .

It is not difficult therefore,
to estimate th'at perhaps up to
10.000 Palestinian guerrillas
will evade the Israeli grasp.
However, should the Christian
forces in east Beirut and the
north of Lebanon become in-
volved, the situation for the
PLO might become more diffi-
cult

These overall constraints
must place a serious question
mark over Israel’s chances of
driving the Palestinians out of
Lebanon. A major bodv of
opinion In the Israeli cabinet
would like to see all the guer-
rillas transferred to Jordan
where there is. already a sub-
stantial Palestinian population.

However, . King Htoatein
would, Mterally. fight to pre-
vent that, as President Assad
probably would too if the Pales-
tinians were driven into Syria.

Without more brutal Israeli
action, it appears likely that .

' *

-

'• V — vt»V • - . >>

'm. -

-U\ ' , I*.

'■ ■

diplomatic

persuasion!'

8jr Reginald Dade.

t ?■ ” 1

fe*,

„ v • i

^ ".•'v •• -•

*-* •'-* .
• V

.

• 4

v

MR ALEXANDER '

U.S. Secretary of State; jester-
'day said that the C-S- hatf -
launched a major dqtomatlc .
campaign to secure - a = cease- >

- - fire; a ccom pained v

Twthdxawal C from ffi -

Lebanon. He .ejear, '

however, that the HjfLwaahbt
• yet ready to 'apj^y sao,cfi(aij.}
against'TsiraeL • v-*;-' |

Mr 'Haig, '’in . :iI^Mjdon\^^fw^t
• -President Ronald -■Realgag's- -
state Yisit ; : saiff ' ftatt ^Mr V
Reagan ... thought.' 'the : first i

priority -was to, do. everyffijng \
possible to brii® ab6i^“a^

Israeli soldiers on an armoured personnel carrier move' through, the port city of Sidon* now -

sarroanded by thehc forces

many Palestinian guerrillas will
stay in Lebanon. Unless there
are massive military and politi-
cal restraints it will not take
them long to begin regrouping
and then rearming. 1

Israel will undoubtedly be
considering bow to prevent this
happening, but meanwhile Mr
Arafat will be looking at how
best to guarantee his personal
and political survival without
losing all independence.

Increasing pressure on the
PLO leadership to shift into an
unyielding hard-line attitude
would ultimately bring changes
at the top of the umbrella
organisation. Mr Arafat has had
to exert enormous efforts in
recent months to keep the lad on

the more extremist factions in
his ranks, growing restless with
the lack of results moderation
has brought.

The recent emphasis placed
by the PLO leader on the diplo-
matic search 'for a .Middle East
settlement, and Iris initial sup-
port .for * the peace plan
advanced by Crown Prince Fahd
of Saudi Arabia, has caused a
serious strain in relations with
Syria;

Mr Arafait will not wish to fall <
under total Syrian • control, . but
may have little option but to'
come more into line with, Pre-
sident Assad's wishes.

as a hero, The last Israeli inva-
sion gave the Palestinian le&ter-
added stature, where- for the
first time in -a Middle: East war,
his forces . stood alone against
Israel.- The Saudis and other
Gulf states '■ will . be yet more
generous in their ' supply of
funds. '

Within the Arab League, Mr
Arafat will probably be greeted

.While the situation on. ..the
ground remain so fluid, it is very
difficult to guess which way the
PLO w4tl now develop. , Cer-
tainly it is likely to survive and
certainly it will become .more
hard-line. Those who argued
that it was pointless to rely on
diplomacy, Europeans hading
and a shift of UJS. view, win
have proved their point

Some talk, but little action, as Assad avoids all-out war

BY PATRICK COCKBURN IN DAMASCUS

Soviet Union

‘not asked

for aid’

“SYRIA doesn't have the will or
the military means to fight ,
Israel,” said a diplomat in the
Syrian, capital of Damascus
yesterday. “There will be some
aircraft knocked down and
artillery fire but President
Assad wants to avoid an all-out
war."

the loss of at least five jet
fighters shot down by the Israeli
Air Force since the invasion
started, are unlikely to change
their stance.

By Anthony Robinson in Moscow
THE PALESTINE Liberation
Organisation has not asked
the Soviet Union for military
assistance in the present con-
flict and does not Intend to
do so, the PLO representative
in Moscow, Mr Mohamed
Asheir, said yesterday.

He praised the Soviet Union
for its “ principled stand ” in
support of the Palestinian
people. The Soviet Union
had supplied the PLO with
arms, mili tary training and
economic and scientific help,
he said.

There are few signs in Syria
that the Government of Presi-
dent Hafez al-Assad expects a
conflict with Israel. No general
mobilisation has been declared,
civilians have not been moved
out of hospital to make way for
possible military casualties and
no air defence precautions are
being taken in Damascus.

The Syrian passivity springs
primarily from the belief that
they will lose any all-out war.
They have no military allies in
the Arab world likely to render
immediate assistance. They fear
that they might get involved in
a full-scale war with Israel by
accident, one local observer
noted. They will make the “ re-
quisite amount of noises but
take the minimum amount of
action." a diplomat added, more
cynically.

mum publicity, with some mili-
tary attaches openly photograph-
ing the tanks with Syrians ob-
jections. But the Government
has yet to summon Western am-
bassadors to complain about the
invasion.

If Israeli attacks are con-
fined to areas outside ' Syrian
control, this policy of restraint
by Damascus will probably con-
tinue. A change could come,
however, if the Israeli ground
forces move north through the
Bekaa Valley. This move would
turn (he left flank of the Syrian
army defending Damascus.

If the Israelis do not threaten
the crucial Bekaa Valley or the
areas held by the 23.000 Syrian
soldiers in Lebanon, then the
Government is likely to limit its
military action against IsraeL
Exchanges of artillery fire, even

Some noise is being made in
the local media. Clashes be-
tween Syrian and Israeli troops,
usually denied by Tel Aviv, are
strongly emphasised. An arm-
oured brigade was moved into
Lebanon on Monday with, maxi-

A long continuation of the
conflict will also put increasing
heavy political pressure on
President Assad to move heavy
forces to support the Pales-
tinians. Otherwise Syria's repu-
tation as a “ confrontation
state” against Israel, on the
basis of which Damascus was

promised 31B5bn a year from
its Arab allies in 1978, will b&
gin to took very thin.

For this reason, the Palestin-
Arafat chairman of the Pales-
ians intend to try to draw Out
the conflict. Earlier this year
Mr Yassir Arafat, chairman of
the Palestine Liberation Organ-
isation (PLO) said his forces
would try to keep fighting for
at least 10 days, to draw in the
other Arabs on his side. Tlje
PLO would not agree to any
ceasefire.

But Syrian-Palestinian rela-
tions have not been very good
over the last six months. The
Syrians suspect Mr Arafat's
sympathy for the Saudi peace
plan, while the PLO does not
want to become too reliant on
Syria. Discussions between the
two on a joint political strategy,
which have been going on in
Damascus for the last few
months, failed to produce a

result

The problem is thatUyria has
no military allies on whom it
can rely. Its relations with Iraq,
whose government it wants to
see -overthrown, are notoriously
bad and those with Jordan
scarcely better. Its alliance with
Iran has strengthened President
' Assad diplomatically within the
Arab world, ' but Ayatollah
Khomeini is too far away to
back, up his offer of military
assistance.

Saudi Arabia has maintained
amicable relations with
Damascus despite the fact that
the two countries backed
different sides in the Gulf war.
President Assad's brother, Mr
Rif as t al-Assad. the second
most powerful man ' in Syria,
was in Saudi Arabia last week-
end and the Saudis are keeping
up their subsidy payments. The
Syrians are somewhat nervous,
however, that the return of

Egypt to the Arab, fold jmay
reduce their leverageTn Riyadh- ■

But while Syria nee^s Saudi
money, there is little that
Grown Prince" Fahd can do to
support the Syrian army .if ft
gets involved in an aH-out war
with the Israelis. It is therefore '
hardly surprising - that
President Assad wishes -to do
all he can to avoid a conflict.

But as be adso needs to
maintain his exhdibitity as
leader of a' confrontation state,
skirmishing with the - Israelis
will continue; receiving maxi-
mum publicity in the Syrian
media' but hot escalating tob
far.

Tins is a difficult tightrope
for President Assad to watk.-
In a short sharp - " conflict
between Israel and -the Pales-
tinians be is likely to succeed,
but a more prolonged war will
make it difficult fbr him to
maintain his balance;-

termination to the.blobdsked^

- Mr Reagan repeated hisfcaU ;
to Israel to " bring; its J Otces
home ” in yesterdaj^s ^est-^

- minster address.- ,4o members
of both Houses .of'Phrimmeht.
No U-S. decision, Md yet been j
taken on whether sanctioaror (
punitive action. Shxrald’I be
taken against 3sraeVMr.BaJg
said... ‘For . the moment
Shipments would amtinue, butf : '
' there was “ .noi very nsm^ in?
the pipeline;” ■■■'-■'■

The U.S.- would defer ju figment -
on wbichside was “ culpable ? ,

• in the 'co.iifUct .until" it'iiad
' made a full assessment Wash-
ington also ' had. to" assess ■
whether th e Israelis had usetf i
U^:-supplied . 'equipmenlL r in :
south Lebanon In justifiable ;

- self defence ” - . .

If the Administration: decides j

tiiat Israel was’>'nqt;acting in
self-defence, it has to notffy.
Congress; : TsraeU Wads 1 , on : ;
./Iraq’s ' Yturilear reartdr 'and ]
Beirut last year, in ,

Tnaide aircraft - were" Involve^ -
. '.£ed^ ^to.a^ temporady, suspension' :
of dellvprie^ of -advanced 'U.S.

- ...fighters^ M _ .

Mr •'Haig-' ;said tbai- 'ocratacts .
. hetwefen Mr Phlfip Habibs ■

. vReagan’s Special envoy in tihe
.Middle East, and fi& Menahem i
Begin, :. the \. Israeli Prime - :
. Minister, had been * initially ' :
jirofl table - " , but .were. atm;.
’Cohfinuii%. '•

The Israeli advance was pro-
*• ceeding at a very quid^ pace, ;
Mr^Haig sajfl. ; -By yesterday . .
-afternoon, forward units were-
' engaged at Damoor, north of -
Sidon, and the- forces left at
‘ Tyre bad seized : a portion, of ^ -
the city: Israeli forces .bad ',
penetrated 25 miles, into
;i€*anon.' in line with': the 1 _

- Israeli cabinet’s objective., ofl-,./
removing Palestinian arQlery ‘

. from range' irf northern IsraeL .
The U5; had' - been .closets •
.-Watching -activity by tbe.;..^
Syrian armed forces and ^had V.
not yet concluded that a data-:.’
sion .had r T4een. TakenMa
. Damascus to become invalyedTi .:
Mr Haig srfifl, : On the grfidnd, ;v:
the -Syrian , army ' had; . taken 4
some steps to increase- its.
readiness and there had been ;
some mo vement of ' locos J r.

, towards the. Lebanese border; .
but these had not : been “
substantiaL -

OTHER OVERSEAS NEWS

Japanese cabinet faces threat
from Lockheed bribery verdict

BY CHARLES SMITH, PAR EAST EDITOR IN TOKYO

THE COURT rulings in the
Lockheed bribery affair,
announced yesterday, i n which
two members of Japan’s ruling
Liberal Democratic Party have
been mentioned, are likely to
cause serious problems for
Prime Minister Zenko Suzuki.

Yesterday's guilty verdicts on
two defendants were the third
to be handed down since the
Lockheed hearings began, but
the first to involve politicians
who were members of the r ulin g
Liberal Democratic Party -when
the affair occurred.

What makes the ruling even
more ominous for the Govern-
ment is the announcement by
the court of a list of “grey
officiais ” who were not on trial
fbr various technical reasons,
but who are said to have
accepted money from Lockheed.

The list includes two
members of the Liberal Demo-
cratic Party at present In the
Diet, one of whom, Mr Susumu
Nikaida, holds the key post of
secretary general of the party.
-'Mr Nikaido was appointed
LDP secretary-general in a
cabinet and party reshuffle last

November and is generally-
regarded as a close associate of
former Prime Minister Kakuei
Tanaka, the Lockheed affair’s
most celebrated defendant. The
inclusion of his name on the
Tokyo district court’s list of
“ grey officials " seems certain
to focus public attention on the
links between the present
Suzuki cabinet and the
extremely powerful Tanaka
faction (without whose support
Mr Suzuki would not have been
able to obtain power).

The court ruling could also
drive a wedge between Mr
Suzuki and the leaders of other
powerful LDP factions who
resent the influence "wielded by
the Tanaka faction.

The two men who were for-
mally found guilty yesterday,
and who have been given sus-
pended prison sentences of two
years and two and a half years,
are Mr Takayuki Sato, who was
a parliamentary Vice Minister
of Transport when Lockheed
started trying to sell its Tristar
aircraft to Japan in the early
19708^ and Mr Tomisaburo
Hastiimoto who was Transport
Minister.

Neither than was accused of
soliciting bribes from Lockheed,
but the court said that Mr
Hashimoto accepted Y3m
(£6.818) after instructing bis
officials to apply pressure on
Japan Air Lines to delay the
introduction of a wide bodied
jet service which could have
damaged the interests of Lock-
heed's prospective customer AH
Nippon Airways. Mr Sato is
said to have accepted Y2m.

Both Mr Sato and Mr Hashi-
moto resigned from the LDP
after their cases came up for
trial, but Mr Sato subsequently
won re-election to the Diet
(parliament) as an Independent.
The Japan Socialist Party, which
has shown signs of wanting to
get the utmost mileage out of
the Lockheed hearings, will
almost certainly demand that
Mr Sato now resigns his seat.

It may also claim this as a
precedent for the case of- Mr
Tanaka (who also sits in the
Diet as an Independent) if he
is found guilty next year. Mr
Suzuki may feel bound to fight
the JSP's demand but must also
be wondering whether faction

Fraser angr y at | elections in Mauritius

‘nuclear free

Victoria’ plan

Future of Diego Garcia in doubt

By Michael Thompson -No ei
in Sydney

BY BERNARD SIMON IN MAURITIUS

Hr Suzuki . . . uncomfortable

leaders in bis own party feel
the same way.

Mr Suzuki heard the news of
the Lockheed verdicts in New
York where he had gone after
the Versailles summit to address
the United Nations. The Prime
Minister looked decidedly un-
comfortable during an interview
shown on . Japanese TV last
night, but confined himself to
saying that the LDP politicians
implicated in -the affair were
men who had “worked hard for
their party and their country.”

PLANS TO declare the State of
Victoria a nuclear free- zone
have incensed Mr Malcolm
Fraser, the Australian Prime
Minister.

Mr John Cain, the Victoria
Premier, says legislation will he
introduced in the next few
months banning nuclear power
stations, uranium mining aj^ri
enrichment. nuclear waste
storage, and visits to Victorian
ports by nuclear powered ships,
or vessels carrying nyrf«»aiir
weapons.

Mr Cain and the Victorian
Labour Party won control of
the state in the Aprfl elections.

Mr Fraser, who toads the
ruling Australian Liberal Party,
accus ed Mr Cain of trying, to
wreck Australia's defence
relationships.

In Darwin, in the northern
territory, where the federal
cabinet was meeting. Mr Fraser
said yesterday that if necessary
he would recall federal parlia-
ment to overrule the Victoria
decision.

In Canberra the row. is ex-
1 pected to lead to a major con-
frontation in the Senate/whioh
is controlled by Labour and the
Australian Democrats.

THE INTERNATIONAL com-
munity will be asked to help
Mauritius end the U-S.’s use of
Diego Garcia as a mili tary base
in the Indian Ocean if the left-
wang Opposition Mouvement
Militant Mauricaen fMMM)
comes to power in Friday's
general election, the M&ars
secretary-general Mr Paul
Berenger said yesterday.

The MMM is a. clear favourite
to unseat the' ruling coalition
government of Sir Seewoosagur
Raangootaxn, who has been
Prime Minister of Mauritius
since the island’s independence
from Britain in 1968.

The future of Diego Garcia,
halfway between Mauritius and
Sri Lanka, is a key difference
in the electoral -platforms of
Sir Seewoosagur's Labour Party
and the Socialist SIMM.

Formerly a Mauritian depen-
dency, Diego Garda was Ceded
to Britain shortly before
independence. The UK hes
leased the island to the US. for
60 years:

Mr Berenger said: “We con- ,
rider . Diego Garcia as our
territory, which has been stolen'.

from us: We will do everything
to recover it" He said the MMM
wil ask India, the Organisation
of African Unity. (OAU), the
UN and possibly the World
Court to support its claim.

Tile present government is
also keen for Mauritius to have
sovereignty over Diego Garcia,
but Sir Seewoosugar said
yesterday that, in the event of
this happening, the U.S. would
be allowed to maintain its base
there.

Despite the Diego Garda
dispute, the. MMM has recently
softened its stance on a number
of other issues. It is working
hard to attract votes from the
country's conservative Hindu
majority, and appears to realise
mat there are no easy answers
to Mauritius’s dire economic
problems -which stem from the
sharp fall m sugar prices. Sugar'
accounts for two-thirds of the
islands export earnings.

. Airways of landing rights on -the .
island- nor nationalise South
African investments.

*' The South ' African . route
has become an essential financial
aspect of Air 'Mahrr£Ui5 , 5 ;
finances," he . said. _ Mauiitins
depends heavily bn its trade and
• tourism links mth South Africa.

Sir Seewoosagur- said in . an
. interview that Mauritius faced
‘a very difficult' period ’Of the
' MMM came to power. TbeMMM’s
cormebttons - , Libya have

.emerged as a. major eiictkm
J^sue over the past .few. days.'. -

-But he. insisted, that .^he
Labour. Party,.. which has been
inpower for over three decades,
attein|»t to forestall the
MMM taking power. *?-r am a
-democrat i. v . have -always'
^ported- pariiament” 7the;

Prime Minister baa'd. ' T "

•Qto;

%]

c ha

.Reversing earlier statements.

“to yesterday thSt
an MMM. Government wouldcon-
tinne to allow Air Mauriffusto
fly to Sou.th. Africa and would-
n«mer deprive South' African

. -The., MMM has -promised to
bold ' elections every five years.

; But H wants to orange the: con-
stitution to allow - fbr easier
nationalisation of .certain
industries -(including *. -7ew -
sugar plantations) vand- "the
wabon of a repubHe. w&tin
the tomnwhwealth!: ^

)

nrli

it

:v>

BRITISH FUNDS

LS? \*A

Shorts” (Lives' up

FT SHARE INFORMATION SERVICE

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6

Financial Times Wednesda y Jeiie 9-1932 - >

AMERICAN NEWS

imf loan Kirkpatrick attacks Haig ‘amateurs’ Salv ? dor

FALK LANDS CRISIS

policy

defended

BY PAUL BETTS M NEW YORK

By Anatole Kaletsky in
Washington

BANKS SHOULD consider
carefnHy the economic poli-
cies of countries borrowing
on international capital
markets and should be
cautions about providing
financing which “only has
the effect of allowing a
country to continue to live
beyond Its means," Hr
Jacques de Larosiere, man-
aging director of the Inter-
national Monetary Pond, said
yesterday-

In a strong defence of the
IMF's policy of promoting
economic adjustment by
at t aching conditions to the
loans it makes to deficit coun-
tries, Mr de Larosiere called
on the Fund’s member gov-
ernments to agree on
increases In their fund sub-
scriptions by the end of next
year.

The deadline for a review
of fund quotas agreed at the
recent ministerial meeting at
Helsinki should be a "matter
of high priority". Without
additional quotas the fund
would lade the financial
leverage it requires to prom-
ote adjustment.

Given the necessary re-
sources the IMF will promote
“ firm and well-conceived
adjustment policies by indus-
trial mid developing coun-
tries alike".

MBS JEANE KIRKPATRICK,
the abrasive and outspoken
U.S. ambassador at the Unijed
Nations, is in the headlines
again after accusing her
oountay * of having behaved
"like a bunch of amateurs” in
the UN.

The TLS. delegate’s latest
controversial remarks about
Washington’s foreign -policy
were made at a New York
I luncheon of the conservative
Heritage Foundation, and came
as relations between Mrs Kirk-
patrick and Mr Alexander Haig,
the VJS. Secretary of State,
reached an all-time low.

In her address to the re-
search. group Mrs Kirkpatrick

took pains to say she was not
singling out the Reagan Admin-
istration but several decades of
U.S. foreign policy. But the
speech appeared to reflect her
frustrations at current U.S.
Latin American policies and
her personal feud, with Mr
Haig. *

Mrs Kirkpatrick, who has the
.reputation at the UN of hehav-i
ing like the typical superpower
representative, often wielding
the big stick at members of
non-aligned countries, has now
taken to dressing down bear own
people.

She claimed the U.S. was
Impotent In the UN because
“we simply have behaved like
a bunch of amateurs.”

She went on to say: “The
decline of U.S. influence m. the
UN Is part and. parcel of the
decline of U.S. influence! in the
world. And than as a direct
reflection of what has been, a
persistent ineptitude in inter-,
national reflations."

Mrs Kirkpatrick added: “ It
is very strange that we Ameriv
cans, who are very good at
pofcitrcs, should be so inept at
international politics In arenas
such as the United Nations.”

She accused her country of
"stumbling from issue to issue-
almost on a mad hatter basis.”

Mrs Kirkpatrick has .not hid- .
den her concern and displeasure
at America's dedskm. to back
Britain in the Falklands crisis.

She bos accused. Mr Hajg of not
understanding Latin American
sensibilities - and of failing to
appreciate UJ5. interests in the
region.

■ For has; iatt, 'Mr. 'Haig is 1
understood to have described
Mrs Kirkpatrick as "mentally
and;- emotionally incapable of
t hinking clearly on 'this issue
b ecau se of her close links with
lAtins." He Is reported to have
told her to stop interfering
with h% policies. '

The question now is how long
can Mrs Kirkpatrick 'survive in
her current position. The aver-
age life of the chief -'U.S. dele-
gate. at the UN is. about two
years and Mrs Kirk p a tr i ck is
now nearing the deadline.

president

backed

By Our Washington
Correspondent :

Galtieri hints return
to civiKaii Me

Bogota military court jails 120 guerrillas

BY SARITA KENDALL IN BOGOTA

AS A FIRST step towards lift-
ing martial law in Colombia,
120 guerrilla suspects have been
sentenced by a military court.

President Julio Cesar Torbay
announced last week that he
would be lifting state-of-siege
legislation, including a . tough
security law passed in 1978, by
June 19.

But as all guerrilla trials
win automaticaDy move from
military to civilian hands once
the measure goes through, the
two-and-half year long court
martial of some 200 people ac-

cused of belonging to the M-19
guerrilla movement had to be
completed first

The sentences vary from two
months up to 30 years for two
members of the M-19 group, and
cover charges ranging from re-
bellion to kidnapping . and
murder.

Over 100 of those standing
trial are currently in prison —
many were judged in absentia
and some have been released.
But lawyers believe the pro-
ceedings have been so fraught
with irregularities that the

trial, is likely to be annulled-

President Turbay said he had
decided to lift martial law after
consultation with the armed-
forces because the May 30
presidential elections, were
peaceful and orderly and
there was no sign of any
serious threats to internal
security.

State-of-siege legislation has
been in force for most of the
past 26 years, and was most
recently imposed in 1976. Some
40 decrees involving radio and
television censorship, strikes,

public -meetings' and drug
trafficking offences will also
be repealed. It is assumed
that those held- under the 1978
security law will be released.

M-19 has apparently suffered
big * losses after' counter-
insurgency operations in the
southern-eastern jungles of
Colombia. Urban guerrilla
activity has also been reduced.

Some IS people accused of
belonging to M-19’s urban net-
work were captured just before
the election, reportedly with
plans for sabotaging voting.

THE US.. Ambassador to
El -Salvador , believes that Con-
gress has "drawn die wrong
conclusions” about the new
right-wing leadership in El
Salvador.-

Mr Deane TTininn said on
Monday- that Congress bad
delivered a “bum rap" on the
country by voting to cut off
mOitaxy aid after a recent
change.. In' El. Salvador’s land
reform laws. •

Mr .Roberto d’Aubnisson,
the extreme right-winger who
became president of the con-
stituent' assembly after the
U.S. - backed elections in
March, Is "basically a patriot,
intent on working within the
country’s democratic system,”
Hr Hinton . told the World
Foreign Adairs ConflriL

Sr (TAulraisson had left his
“highly- questionable past”
behind .him* Mr Hinton be-
lieved, although he added that
he. could 'offer no guarantees
Sr b’Aubuisson would not
revert to the : kind of be-
haviour which bad led the
previous. U.S. Ambassador to
describe him as “a -patho-
logical killer ”

Sr (FAnbisson has been
linked to right-wing death
squads and to the assassina-
tion of toe progressive Arch-
bishop Oscar ‘ Romero -two
years ago.

BT HUGH O l 5i-mUGHNES5Y»lA , nN AMERICA *3DRJ®PONDO#T

Cool Brazil keeps Washington at arm’s length

THE United States Is belatedly
turning to Brazil as the anchor
of its battered relations wdfib
South America. Gratified that
ait last it is being given the
attention it fells it deserves,
Brazil for its part wants to keep
its distance.

The U.S. Administration
seized the opportunity last
month of the first official visit
to Washington, by a Brazilian
President for 11 years to make
■the point

Welcoming President Joao
Figueiredo to the White House,
President Ronald Reagan lauded
the former cavalry general with
expressions of “joy,” “great
ness" and “potency.” However,
tile Brazilian Press and the
huge official party was not
taken in by what one magazine
called “the Hollywood climate.”

Apparently, the two men got
on well together in their brief
encounters; the personal
chemistry being regarded as

essential for a healthy relation-
ship. As a senior U.S. official
told Braz&Han journalists, “How
could two men who both love
horses not get on?”

Sr Figuelredo’s notorious
remark on taking office,""! pre-
fer the smell of my horses to
the smell -of the people,” was
diplomatically forgotten.

Instead diplomats from both
countries stress that Brazil's
political liberalisation pro-
gramme and “xe-democratisa-
tJon’’ is an essential part of the
new relationship between the
two countries.

The fresh outlook Washington
is giving to Brasilia comes in
the wake of its estrangement
with Buenos Aires as a result
of the Falklands crisis. Whereas
Argentina had been seen as
the cornerstone of an alliance
of anti-communist countries in
Latin America, Brazil, in its own
words, can be regarded as a
“stabilising, moderate force,"

Andrew Whitley reviews a new

U.S. courtship in South America

Brazil’s frustration over being
unable to influence the coarse
of - events leading up to the
Argentine invasion of the Falk-
lands was compounded by its
evident lack of influence sub-
sequently. “ We would be
prepared to help find a solution
if we could be of use,” a
Brazilian diplomat said privately
in Brasilia.

It ,was a modest departure
from the country’s traditionally
low-key approach to foreign
affairs, but a signal that Brazil
is changing its longstanding
position against involvement in
joint international actions;

Both the U.S. and Britain are
believed to be very interested in
securing Brazil's participation
or co-operation in some form of

shared role involving the Falk-
lands, once Bri tain has com-
pleted their recapture.

According to White House
sources, - Brasilia has already-
agreed in principle to -help.
What eventually transpires on
the ground will depentf on the
exact conditions involved, but it
could .mark an historic change
of outlook for this introverted
continental-sized country.

„ Flans for ithe Brazilian Presi-
dent’s trip to the United States
were dogged by bad lucP. First,
the planned dates . coincided
with the World Cup in Spain —
President Figueiredo being a
keen soccer supporter, the pro-
gramme had to ta brought for-
ward — then the Falklands storm
Wew up. A number of top Bra-

zilian officials argued strongly
that the trip should be post-
poned or cancelled. 'In the end
It was shortened and stripped
of frills but went ahead.

The visit was not a failure as,
in public at least, little store
was being put co its outcome.
But nor was it a success either,
for the Brazilians received do
satisfaction on a list of very
specific grouses, ranging from
sugar quotas to the Law of the
Sea debates, they brought to
Washington.

Trade with the U.S. has
lessened over the past five years
or so as Brazilian exporters
have pushed into new markets
around the world, but U.S. cash
— invested in Brazil and lent to
finance growth and service exist-
ing debt — remains of funda-
mental importance for the South
American giant, now the world's
eighth largest economy.

UB. banks, led by Citicorp
with a mighty f4bn (£222bn),

are creditors for up to half of
Brazil's $67bn medium and
long-term foreign debt.-. At the
same .time, .interest rates set .by
those very same banks Twithin
the U.S. have a painfully direct
correlation with the fortunes of
Brazilian industry.

The twin themes of the dam-
age caused to the Brazilian
economy by high U.S.' interest
rates and trade- protectionism;
were hammered home again
during President Figueiredo’s
visit Further complaints were
the U.S--msp4red moves by the
multilateral lending agencies,
notably the Wodd Bank, to
wean: countries such as Brazil
off (heap loans!

A new, “more mature” re-
lationship is st& dto be merg-
ing between the two countries.
Bat, as President Kguerredo
made explicit in his talks with
his horse-riding counterpart, it
would never be a " special
relationship " of^the old -type- ;.

ARGENTINE political life', was
thrown into confusion early
yesterday morning' ; „ when
General . Leopoldo Galtieri, :
the President, suggested that
the return to ■. democratic
government, J promised by suc-
cessive military regimes, couid
be slower than expected and
that foreign. policy could : be.
“ wholly recast”

The first public- reaction to ;
Gen Galtieri’s remarks,- which
were, delivered: at the, pr^s
office.’ vQf ' the ; presidential
palace, ; has £been- - hostile.’

The influential Radio Conti-
nental, in its . morning . news
programme; said t}ie president's
apparent, wish' :to T stow -down,
progress towards” civibasa rule
■was . “'inadmissible!'’'

Referring 'to-: legislation
offi da Hyp ro mis ed far mid-year,
Gen Galtieri. said the' new- law
regulating- the organisation of
political parties, whose activi-
ties have "!bebn - banned since
the military coup : :of 1976,'.
would be promulgated -as
erpectedi - - ' ;

Be unexpectedly added, how-
ever, that after the confirma-
tion ofthe parties’- political
leaders, “it win be seen whether
better ciroumstances obtain— or
not— for a continuing advance
in the jnstitutionalisaJion ofthe
country.” - . • . -

Gen- Galtieri’s remarks are a

dear’ indication of his doubts
over 1 Whether there will be ' a

swift return to civilian ‘rale
later this year.

Politicians' had- generally
expert edthat' the transition
would be ; rapid* v.T'hoti only
because! large ' /political .
demonstration . staged iAftoht
-of the government 'borae^on
Mazdh '. 13; ' just -before -fflie.
Falklands invasion. Was seeuas ;

■ • a- .dear . sign. . of / increasing -
jmpatieflce .with .the? itoiftary"
-regime! but also: because r fhe
sacrifices' represented fjby^toe!
.Falklands war : are' ; ■

- justify greater public participa-
tion in -government.: t V-* jiy- >'»“ :
.. .-Gen . Galtieri’s donbt^: about
Argentina’s .

come amid, mounting, jgeerfla-,
. about the Bnatonenit.^lKV*
sitiou of . newspaper.! cemmsMst. ■

Gen Gdtieii’s.: remarks 'oa

foreign policy also app eared to
run counter to statements on
Monday by Sr Nfcahor.' Cbsfe
Miendez, 'the 1 Forei^i Mincer.-;.

Sr Caste Mendaz has been,
.under fire, since ins' ietitrufraan
the non-afligned -^-forefea
ministers’ meeting in ' Havana
last week for having: eppeaoed.-
too friendly to the ocutfewnce ;
r»hflijiTna.T> l President Ffdri .
Castro. : ~ - ' : - • .

.On Monday he. commented:.
“I have no defenoe tp make,"
and: added toa£ : .; Argentina.::
would .hi>t move, its ideological- ,
position or its political position;
by “ one" centimetre." ■; : .

BY ALAN FRIEDMAN

ARGENTINA is continumg to
receive money from the Bank of
America, according to Mar Sam

AmaCOSt, pfawinrnan of the
bank. . * !' ■

Mr Armacost said in' London
yesterday that the bank was
maintaining 'all short-term . credft
lines. He refused to quantify the
extent of his bank’s debt ex-
posure to Argentina. .

“We have kept . oor credit
facilities open to .Argentina,” he
declared. “The conflict is be-
tween the UK and Argentina, As
a commercial entity we have
not been affected.” ■

" Mr Armacost said he had no
knowledge of any reemestsffinom

Brttfto banks to share lout
ArgeatShfcn Interest paymeote -
under longetonding loan pro-
virions. ; UB. banks have^been .
. receiving such requests for more;
than a fortnight* . . ^ -• . - .

, If Argentina were to ask far-
additional funds. -throngb!:
metHum-4acm syndictuted loans, 4
the bank Would “ consider U;”

" said'Mr Armabosti AH dealings
wfith Buenos Aires woukl be., on ■
a stridtiy commercial baste. ;

The -bank has. ioo .plans to. re- ;
duoe it* credit lines to^ Argen- |
tina “That borrower (Argeh- •
tina) ha^ mat all eonditions for '
keeping the; credit in placed he '!
added. - : -

RONALD REAGAN TELLS MPs OF THE MARCH OF FREEDOM

‘The democratic revolution gathers strength’

THE FOLLOWING are extracts Poland Is not East or West which began here in England, since the fifties and is less than ^present threat .

from the text of yesterday’s Poland Is at the center of and the gifts of science and half of what it was then. The Bat beyond the troublespots

address in the Royal Gallery, European civilization. It has technology have made life dimensions of this failure are lies a deeper, more positive

Palace of Westminster, by Presi- contributed mightily to that much easier for us — they have astounding; a country whidh pattern. " Around the world

drat Reagan to Members of civilization. It is doing so today also made it more dangerous, employs one-fifth of its papula- today the democratic ravolu-

both Houses of Parliament : by being magnificently unrecon- There are threats now to our tion in agriculture is unable tiern is gathering new strength.

. ’ ■ died to oppression. ' freedom, indeed, to our very to feed its own people. In India, a critical test has been

Speaking for all Americans, I Poland’s struggle to be existence, that other genera- Since the exodus from Egypt, passed with the peaceful

died to oppression. '
Poland’s struggle to

feed its own people. In India, a critical test has been

Since the exodus from Egypt, passed with the peaceful

want to say how very much at Poland, and to secure the basic tions could never even have historians have written of those change of governing political

home we feel in your house, j-jghts we often take for imagined.

who sacrificed and struggled for parties. In Africa, Nigeria is

Every American would, because granted, demonstrates why we There is, first, the threat of freedom: the stand at Thermopy- moving in remarkable and nn-

■ ■ ■ * * » ■ — — — — — ^ i.i , « i l OL, ■ * i r. LUIbftL -

this is one of democracy's dare not take those rights for global war. No President, no !**• ttie revolt of Spartacus, the mistakable ways to foaiid and

shrines. Here the rights of free granted.

Congress, no Prime Minister, no storming of the Bastille, the strengthen its democratic insti-

people and the processes of We are approaching the end Parliament can spend a day Warsaw uprising in World Wax’ tutions. In the Caribbean and

representation have been Qf 3 bJoody century plagued by entirely free of this threat And IL
debated and refined .... - - - ....

Central America 16 of 24

aeoatea ana rennea a teTrible'potitical invention^- I don’t have to tell you that In More recently we have seen countries have freely elected

From here I will go to Bodol, totalitarianism. Optimism comes . today's world, the existence of evidence of this same human governments. And in the

and then Berlin, where there less easily today, not because nuclear weapons could mean. Impulse In one of^he develop- United Nations, eight of the 10

stands a grim symbol of power democracy is less vigorous, but Ujk* the extitmtira j of man- wraxiom m <tont^ AmenoL ^ elupm g ™ Uo us which have

untamed. The Berlin Wall, that because democracy’s enemies kind, then surely the end of For months and months the joined tfce body in the past five

si>av aach swMfwc fho haw. rpfinpri thpir inctr-nmAntu civilisation as we know it. world news media covered the years are democracies.

dreadful grey gash across the have refined their instruments civilisation as we know it wjfld news media covered the
city, is dn its third decade. It of repression. Yet optimism is . That is why negotiations on 'fightms in El Salvador. Day

In the Communist world as

is tie fitting signature of the in order because, day by day, intermediate range nuclear ajte? day we T e _. tl T a * e ^ wed], man's instinctive desire
regime that built k. democracy is proving itself to forces now underway in Europe stones and film slanted toward f or freedom and self-determin-

a ^ irn«_ be a not-at-aH fragile flower. and the " Start " talks — Strata- the brave freedom fighters a tion surfaces again and again.

And a few hundred kilo- . pj c Arms Reduction Talks — battling oppressive government Some are™* that we

meters behind the Berlin Wail wh ich will begin later this forces on behalf of the sflent encourag^eon^ratic

there is another symbol In the Jg reSieTnlSted bv totS month ' 3X6 not iust to suffering people of that tortured ia right-wing dictatorships, but

center of Warsaw there is a “ e . . gun “ pianiea oy rotau- American or Western policy; countzy. nQt rommunist noimM Tn

sign that notes the distances to estabtish leS they are CTiticaI t0 maaktod- J ne . n one those sflent accept this prept^erouf notion

two capitals. In one direction to estaoushtheir legi qht commitment to early sue- suffering people were offered a — assome well-meanme oeoole

wo capitals- a* u fle ui««uuu *1^1 our commitment to early sue- suffering people were offered a __as some well-meaning people

it points toward Moscow. In the l. „ -°° c cess in these negotiations is chance to vote to choose the have— is to invite the argument

other it points toward Brussels, "g 10 *^* 8 firm and unshakable and our kind of government they wanted, that, once countries 6 acSerea

omer it poima rowan* jaru»cia. -rjr— z ~~ firm ana unsnaitame and our sma or government tney wamea. that, once countries achieve a

head^era of Western fiSSTdo SfS P-pose is^clear: reduong the Suddenly, toe freedom fighters Sea?^^ to^ould

Hugh Routicdg*

Reins of power: President Reagan riding with toe Queen at Windsor Home Park yesterday

SSvSi?® MOSCOW and We have not inherited an war on both of 'their o^ itagnm poiMcal tataO. goiog on for the world vfli

means of waging war on both JgttAf are: Gnbrn, piStoT »w Sr tte^S J^X'^S&STSm'

sld fS-^ ^ ^ backed guerrillas who want citizens. We reject this couree. to determine bow the United not be ltombs and rockets— but fad a

^ XL SPSPS a USE*!* ?Sf lveS “? We ignore that fact States can best contribute-as a test of wills and id^-TtS SndliMLtXrSv

threat posed to human freedom backers, not democracy for the that even without our encour- a nation-<o the global cam- of spiritual resolve: -SiVvatoS aS^^mlh o^^iL Here

by the enormorm power of toe people. They threatened death agement, there have been and paign for demoga^ now we hold, toe beliefs v^ chSSE Sn?SS to

modern state. History teaches to any who voted and destroyed will continue to be reneated gathering force Thev wiu and the Meals tnrohjAh am ons y ou « toe cradle of sen-

0,e dangers of g ^m. e nt that hundreds of hoses and tro'chs SLSSTSm SISK'S Sve rt! ™ «he motter of

Warsaw to Brussels are equal, easy world — if developments
The sign makes this point: like the industrial revolution.

We have not inherited an sides.

sy world — if developments At the same time there is a

modern state. History teaches to any who voted and destroyed will continue to be repeated gathering force. They wiH

the dangers of government that hundreds of buses and trucks explosions against repression in have the co-operation of Con-

overreaches: political conteol to keep people from getting to dictatorships. The Soviet Union gresskmal leaders . of both.

taking precedence over free the polling places. But on elec- itself is not immune to this parties, along with representa-
economic growth, secret pobce, Uon day the people of El Salva- reality. Any system is t^es of business, labour, and

COn J' i 0 "’ anunprecedented him of inherently unstable that has no other major institutions iii our
bming to stifle mdividual excel- them, braved ambush and gun- peaceful means to legitimise its society

gSg 1 * 1 ” ^ 10 V ° te ^ T 57 -A^the same time we tovfte

teaches self-delusion in toe face On distant islands in toe

of unpleasant facts is folly. We South Atlantic young men are necessSv ^ forS ? f

sap. around ua todav toe marlca ^ U D ? IOrCe * * *. rd€aS .«»* Values— whldh it IS

see around us today the marks fighting for Britain. And, yes. The oblective I nronose In
,ofour terribledilenuna — pre- voices have been raised pro- qu i t e simple to state: foster cSS^ed on

toss- USS&. SS5F-5S S peacefld ^

Coutts & Co. announce
that their Base Rate
is reduced from
13% to 12^% per annum
with effect from the
8th June 1982
until further notice.

*

National

5S" =2 " .the system of a free press, ‘TTKf ffi-d on otter

^ ^ unions, pohtal Parties, oniver:- oceMione, ied^og my *hhres

M Westminster
^WBank PLC

must for its own prelection be aren’t fighting for mere real sitles-wfateb^ ail^^ a people to ■ oTBT

SS^P'SJ&SL'ZZ; SSTs2r ^*?S^S

f0r beli 5 ?K dcve,op theU - "* **£* to S^^TJnton to safeS S

3Sgression_murtn« be allowed reconcile their own differences interests and protect tiro peace,
subversion and conflict around to succeed, and that people through peaceful means. --- ’ • - - y

the globe to further their bar- must participate

What I am describing now is a

fc i.. . , Over the past several decades, plan and a hope for toe long

barqus assault on the human decisions iff government under Wert European and other term-tiie nmreh of freedom
SP* 1-11 - Jbe rule of law. If there had Social Democrats, Christian and democracy which will leave

In an ironic sense, Kw - ! Marx been firmer sup^xirt for that Dpmocrats and Liberals have Marxism-Leninism on the ash-

vras right We are witnessing principle some 45 years ago. offered open assistance ' to heap of history as ft has left
today a great revolutionary perhaps our generation fraternal political and social other , tyrannies which stifle the

a fnc 1C -m/NaT-A thp. dp. unuMn', hwa Gnffanu) t.Vlf, : .. i ■ * . __ , . . “ .

crisis — -a crisis where the de- wouldn't have suffered toe institutions, to bring about freedom and muzzle the seif-
mands or the_ economic order blood-letting of World War IL peaceful and democratic . pro- expression of the people.

nra nnlliHina riinvtlv with thncp f . i/lHln frha anne — A - . _ , jt - ' mv _ . - , “ “ - “ .

The DepositRate on
monies subject to seven days’
notice of withdrawal is
reduced from. 10J4% to 9}4%
per annum.

are colliding directly wito those In the Middle East the guns gress. Appropriately for . a ! That is why we must continue.

of the political order. But the sound once more, this time in' vigorous new democracy, toe our efforts to strengthen Nato
crisis Is happening not in the Lebanon, a country that for too Federal Republic of Germany's even as we move forward witii

free, non-Marxist West, but In long has had to endure toe political foundations have he- our zero option initiative in the
the home of Marxism-Leninism, tragedy <ff civil war, terrorism come a major force in this negotiations on mtermediate-

ttae Soviet Union.' It is toe and foreign intervention .and effort.

range forces end our proposal

Soviet Union that runs against occupation. ■ The fighting in We in America now intend for a one-tirird reduction in

the tide of history by denying Lebamn on the part of all to take .additional steps, as strategic ballistic missile war-
freedom and human dignity to parties most stop and . Israel many of our allies have already heads.

its citizens. It also is in deep shotrid bring its forces home, done, toward ttraMsmg • tons Our military strength is a'

economic difficulty.

But this is not enough. , We same goal. The chairman and preprequisite to peace but let

NatWest announces that
with effect from
Tuesday, 8th June, 1982,
its Base Rate is reduced from
13% to 12V 2 % per annum.

The basic Deposit and.
Savings Account rates
are reduced from
101/4% to 9y2% per annuiri. .

The rate of growth in toe must aH work to stamp out the other leaders of the rational ft be dear we maintain this
Soviet gross national product scourge of terrorism that in the Republican end Democratic strength In the hope it will

has been steadily declining Middle East makes war an ever- Party organisations are hrttlat- never be used. For toe' ultimate

SU »

jV^V-in? in ! ; J — — 7 ; : ; — ..., •

i It is difficult for us to
day v, ^ imagine today the thrill of
i flying on the China Clipper
I from San Francisco back in

D a creifi ■ 1935 • The eighteen hours to
& Hawaii was considered a
miracle, spanning the Pacific
S SSr in three days impossible.

■>« But all the passengers

i were well provided for by
^attentive stewards in sped-r pj

; ^ ^ ally designed uniforms. __

TUi S ;The passengers dined from tables

covered in linen. The plates were fine

china and. the silver was real.

3 Fresh food was taken on board

in Honolulu and passengers chose

r-' --r^/ w

■ ..

■ ■' .• - rf’.:- -.j--:: .

- " •<* jpjj, .

y-.-«*5rri: v.~

• **

-Jti

First Class. More space, more privacy more comfort

the chocolate cake disgraceful. Should you be fortunate enough to

Yes,First Class Service onPan Am experiencethisseatofseats,noticethe ■

today is quite an experience. smile that comes to your face as you '

settle into precisely the right position.

ion

insts

>LC

;es in 1

m .
,1981

jced * !

■a nn^ !
sit

t rates

Fresh coldseafood. Champagne.
The dilemma, of such difficult ded-
- . sions as having to

YOU can / choose between
experience smooth pate or the ;

Pari Am richly textured pate
, ,1 de campagne.

lO these Shrimp in mustard

US. cities, sauce. And this is
— — — T — — before dinner.

Newark' Honolulu .. m, , -i-i

-S5T~ ~£5^T - ^vegetables

Los Angeles 'NewOdeans SYG OlSp/ th0 T03St ■

sanfrandsco Orlando beef is precisely the

Seattle Pittsburgh Wa yyQUWantit,the

Washington .. SanDi TL fiihis succulent,the
-^-S-wheflowsedk^,
■ Dallas/ " Kansas city the. fruit ripened to
Fort worth -Tuisa perfection, the

. Petroit OklahomaGty chggggs impOlted, ,

Fkn Ams RrstQass seat
may be the most
comfortable in the sky

The idea behind our Sleeperette®
seat service is not new. The first one
appeared in our Constellations inl949
when it took 23 hours to fly between
Europe and the U.S. And while the
concept is not new its high level of
comfort is.

There.are enough angles in it
to support whatever it is you XJ

wish to do-spread out and work,
or stretch out and relax. W-5

i

i ne extraordinary sense
ofprivacyon
every Fkn Am widebody

You will experience more space
in First Class on every Pan Am wide-
body 747 and L10U. (And we have
more widebodied jets than any other
airline, by the way.) This is largely a
function of the fact that we usually put
fewer seats in the same amount of
space as any of the &ntartyour!rave , as “
other airlin es 01 phone Pan Am -

UULCi CLU.-LU.lcO. • London 01-409 0688

The truth is, WtTni^ain0a-M69561

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any practical use for.

But there is one

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Roomenoughinwhichtofeelprivacy. ;

X This experience of privacy is,

perhaps, the greatest luxury to
be found in travel these days.

Financial Times Wednesday June .9 1982

WORLD TRADE NEWS

Urgent appeal to
boost Third World

energy investment

BY DAVID DODWEU

. THERE IS a “compel! mg need 1 *
for new ways of channel! mg
money into energy development
in the Third World if the deep-
ening energy crisis in develop-
ing countries is to be averted,
according to a leading energy
specialist in London yesterday.

Mr Maurice Strong, chairman'
of the International Energy De-
velopment Corporation (IEDC),
said at a London seminar yes-
terday that an “international ex-
ploration fond” ought to be set
' up to mobilise private sector
'funds for use “primarily if not
exclusively 4 ' in exploration in
developing countries.

He claimed the risks involved
in such investments had been
greatly exaggerated, and that
the potential returns had been
ignored. But because the oil
■majors were likely at first to
resist such a departure, Mr
Strong called for a lead to be
taken by the International
Finance Corporation, the hard-
loan wing of the World Bank,
and by the national oil com-
panies of developing countries
and of major oil-importing

countries.

He also called on developing
countries to improve the fiscal

terms on which they would
allow foreign organisations to
search for indigenous energy
sources, and to improve the
operating environment for such
companies.

The energy crisis was, said
Mr Strong, a “ stark Teality in
Mhe energy-deficient countries
of the developing world.

“Burdened with debt and
with the prices of their export
commodities at the lowest level
for some 30 years, fee oil-
importing developing countries
deadly face far more than a
short-term crisis,” he said.

Noting the reluctance of
many investors to pat their
money into oil or gas explora-
tion. in developing countries.
Mr Strong argued that “the
political risk factor has been
greatly exaggerated.”

With an appropriate lead
from organisations like the 3FC,
and from private sec tor o rgani-
sations ISce bis own IEDC, Mr
Strong was convinced that “it
should be feasfWe even to coun-
tries with a dubious credit rat-
ing to base the financing of
energy projects on a properly
secured pledge of the income
they generate:"

Queensland bid to increase
coal exports to Europe

Br RICHARD JOHNS

QUEENSLAND IS aiming at
increasing substantially its
exports of coal to Western
Europe, Mr Ivan J. Gibbs, the
state’s Minister of Mines and
Energy, said yesterday in
London at the start of a visit to
seven countries.

Last year, the region
accounted for 5.4m tonnes, or 20
per cent, of shipments totalling
27.69m tonnes, but Mr Gibbs
emphasised that the Queensland
Coal Board sees it as a major
potential market in its bid to
utilise fully capacity currently
installed or under implementa-
tion of 50m tonnes.

As it is, earnings from coal
almost wholly high quality

coking fuel, surpassed those of
grain and sugar, the state's main
traditional exports* in 1981.
Total Queensland output last
year was 35m tonnes.

Mr Gibbs was speaking at the
start - of a tour of the UK,
France, Sweden, Denmark,
Holland, West .Germany and
Italy. ' Last year Queensland
sold 1.78m. tonnes to Italy,
1 -13m. tonnes to France, 934910
tonnes to the UK, 635,512 tonnes
to Spain and 615,490 tonnes to
the Netherlands and 330,124
tonnes to Bel gium.

The most important UK
customer is the British Steel
Corporation, in particular .for
its plant at Redcar.

European

airlines

lost $700m
in 1981

By Michael Dome, .
Aerospace Correspondent

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NET LOSSES by the European
scheduled airlines amounted
to . about $700m . (£3S8m)
during 1981, compared with
S900nz in the previous year,

according to preliminary
figures prepared by the Euro-
pean Airlines Association.
This figure Includes both the
operating losses incurred by
the airlines (which were
down substantially at $122m
against $460m in the previous
year), and financial charges
(such as interest payments
on new equipment).

The latter rose substantially
during 1981 as a result of
high interest rates, coupled
' with the increase in the value
of the U.S. dollar, especially
since many European airlines
in that year placed orders for
new equipment for delivery
in the mid- to late-1980s- Most
of the equipment either came
from the U.S. or had UJS.
components.

The association, which includes
both British Airways and 19
■other .major European air-
lines, points out that while
most traffic forecasts/ point
towards a modest traffic
growth in the future, the
short-term outlook “is still
rather bleak, and all indica-
tions are that the economy in
general, and the air transport
industry in particular, will
still- face serious problems:
"Most traffic forecasts are, in-
deed, pointing towards a
modest growth compared with
the high 8 to 10 per cent
growth rates experienced in
tiie last decade.

Governments can play a role
in helping airlines to turn
their losses into profits by ex-
ercising cost control over
those items in which they
have a major say.

“In the medium term perspec-
tive— -four to five years— air-
lines must carry on with their
fleet renewal plans, in order
to be able to benefit from
more economic, fuel-efficient
aircraft types.

“However, this era of low
growth and losses has not
allowed for sufficient reserves
to be made for capital require-
ments.

The association points out that
while there are currently
some considerable political
and consumerfst pressures to-
wards cheaper fares in
Europe, it would be "quite
inopportune and very dan-
gerous indeed to adopt poli-
cies which are adopted in a
completely different environ-
ment such as the U.S., whilst
even there, questions are now
being asked as to their actual
results.

Douglas optimistic over operations

BY LYNTON MdJMN, RECENTLY IN LONG BEACH CAUFORNA

THE DOUGLAS Aircraft
company, the commercial air-
craft maker in the McDonnell
Douglas Corporation, is
cautiously optimistic about
the prospects for growth in
domestic and international
scheduled airline' operations
in the 1990s.

At the same tie, however,
the .company is concerned
about the rapid fall In orders
for commercial aircraft,
which could see production
of its DC-9 and DC-19 air-
liners cease for lack of orders
by the middle of next year.

The company expects the
air passenger market to grow
by between 6.6 per cent and
7 per emit on average
between now and 1995. This
In turn Is expected to create
a demand for new and re-
placement commercial air-
craft worth up to a total of
$268bn (£14&8bn) by 1995 at
1960 prices, Mr Bill Gross,
the senior vicepresident for
operations at Douglas Airy

.craft, said recently -at the
company’s headquarters at
Long Beach, California.

To win a dure of this
market, Douglas is working
.on designs for three new civil
' airliners. - These - are the
Super 10 derivative of the
DC-10 airliners, possibly to
be powered by fife Rolls-
Royce BB211 535 F4 turbo-
fan engine; the DC-10 Super
30/49, a stretched version of
the existing DC-10 and the
D-3300, the latest: version of
the company’s 1 ongrunning
plans for a 159-seat airlin er.

The market for a future
airline with 150 seats is the
target of the most intensive
battle among aircraft makers
to win airline orders. The
Douglas Aircraft proposal for
the D-3300 is a version of the
. co mpan y ’ s MDF 100 proposal,
launched originally with
Fokker of the Netherlands.
Fokfcer withdrew lust year
. and Douglas, looting for new
partners is In direct com-..

petition with the proposed

A320 airliner from Airbus

-Industrie. '

McDonnell Douglas is
-anxious for potential airline
customers .for the 150-seat
new -.generation airliner to
harden up their tentative
. interest ' into ' firm orders.
Existing work at the Long
Beach factories is steadily
running out, as airlines
retrench in the face of
limited current- growth in
.scheduled airline passenger
markets:' *

The' 1 ' company is rapidly
working through, a diminish-
ing order book for its DC-9
and DCJ0 airliners and a '
rapid reduction of staff has
had to be enforced At the
California, factories to bring
manpower capacity more into
line with, the reduced demand
for civil airliners.

of its 25*558 staff at tin works

over tWfirst qua rter of this
year as demand coothmed to
slump, for commercial aircraft

The - factories >at Long
Beach have suffered most.
Douglas shed over a quarter

The company now employs
18,546 staff at Long Beach
and has only ewe -year-of -work
left on current orders for
! each of its -two main -.civil
7 aircraft programmes, -the
DC-9 and the DC-10-
Douglas Aircraft has won a
total of 1,090 orders for 'its
DC-9 1 ■ twin-engine airliner,
but by May 1? this year fbe-
latest available figures, the
company had delivered all
but 37. of- the aircraft. These
remaining airliners r are how
being produced at the rate of
9.71 aircraft a week. - -
- At this rate, the total cur-
rent order book for the DC-9
will be exhausted Iff the mid-,
die of May next year. '

A similar , picture . affects
■production of- the PC-10, the
company's long-range inter-
co inental - airliner. Douglas

ins oidy . tom year of 'worh

left on production of the air-
craft. Airlines ordered a. total
nf 383 . of .various . DC-19
models, but 386' of these have
already -been delivered. .

. The ' remaining ' 15 aircraft
are being assembled _at the .
Long. Bearir works, trat at a ,
rate, of ' only 03 aircraft' a -■
week, enough .wort for almost,
exactly A year. - McDonnell
Douglas* however, is to reduce
the_ annual production rate
from the present 15-a-yeat\*o ;
eight-a-year Iff -next ■•

an attempt. -fo spin" out toe
tittle remagrring wotiC .

The company also has air-
line options . for. 2ft
DC-10, airliners, ,, huf -vtith
demand tor- scheduled :mlr
travel growing <mff-akmff r
and ; with:. new, more: fuel
efficient aircraft oa the draw-
Ing board, 1 there, is. no -great
confidence that these eptions
will be converted. to. JLnn
orders. . ^ •

Export credits dispute looms between Japan

BY PAUL CHBESHUGHT IN TOKYO

A FURTHER dispute between

Ja pan and the EEC loomed
yesterday on the conditions to
govern the grant of export
credits over the next year. An
open breach could signal the
start of an export credits war.

Officials at the Ministry of
International Trade and Indus-
try (MM) in Tokyo said any
attempt to change a secies of
Swedish proposals on interest
levels for export credits is
unacceptable. •

But in Washington, officials
saSd tire U.S. would accept
manor modifications to tile pro-
posals. The nature of the modi-
ficattons was due to be discussed
yesterday with Mr Axel Wallen,
the chairman of Ihe export
credit group at the Parish ased

Organisation for Economic
Cooperation and 'Devatopment.

The d i vergence of these
positions means that the current
regime for the grant of officially
subsidised export credit could
expire on June 15 without
agreement on a replacement.

This in turn woedd open the
way for any industrialised
nation to offer subsidised credits
without- restriction. It would
mean the break dwm of the Con-
sensus, the international agree-
ment on guidelines for the grant
of officially subsidised export
credit, which draws in 22 in-
dustrialised nations at OECD.

The Consensus nations failed
in eaafy May to reach agree-
ment on a new pattern of
interest nates 'for export credits

and on 'the means to achieve
a general reclassification of
borrowing • ; coimtries — this
determines . the interest rate
they have 3»pay.

Sweden put forward com-
promise proposals which were
later accepted Iff the U.S. and
Japan, but the EEC asked for
and was grafted a delay on any
decision unta June 15, the day
'after it bolds a Finance Min-
isters Council meeting in
Brussels. -

- Mhi officials said that Japan
accepted the extension on the
condition that the extension
.would be far tins one period
-only; the present situation on
interest rates is intolerable,
-they said.

The proposals would raise

export credit rates for- rela-
tively rich borrowers by L(KL25
percentage points to 12.25-12.5
per cent and for middle income,
country borrowers by 8. 5-0. 6 of '
a percentage point to !1LD-1L6
per cent ' .

The .rate. for. Japanese yen
lending would be seta* a mini- .
mum 0.3 of a percentage point:
above tire Japanese longterm-
prime rate, to give a new export
credits-: lending' rate under
present canddtioos ^of : 8.7 per
cent

At the same time; the- pro-
posals . specified that the
reclassification of "borrowers
would take place without any
transitionafl. period. This would
raise the level of - newly
industrialising countries from

the ; rel a t i vely: poor- to:, -fte :
middle income category V.&id
move the Soviet Union" " '

ntiddte income to tire
rich category^. - .

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The . EEC Iris riot foriSaHy
presented ideas 'tor -spScifle
change to these proposals;
to the UjS. or Japan. But Japan
has been informally ^-soUuded-
out about raisin g the premfom
over its. tong-term. prime' rate
from 0.3 to 8.5 df A percentage
point; a point of especial
tearest to the UK

a

If Japan were to subsidise its
export credits at the sauri rate
as the high -interest' countries ia
the EEC, it would be able to
lend at a rate: of B pec cent,
the vrtftHah; commented; j

U.S. drive to insure Greek vessels

BY ANDREW FISHER. SHIPPING CORRESPONDENT

U.S. MARINE insums yester-
day served notice that they will
mount a strong challenge to
wean away a large dice of
Greek shipping business from
London.

Mr AHen Schumacher, chair-
man of the American Hull In-
surance Syndicate, proposed an
expansion of the marine market
in the UK as an alternative to
Greek links with the City
through Lloyd’s of London.

Speaking at a shipping con-
ference in Athens, he said “ as

our hull portfolio continues to
expand, we will plan to expand
our'facLKties.”

His proposal followed a com-
plaint by a leading Greek own-
er -that the surcharge imposed
by Lloyd’s on vessels from
Greece since 1978 was discrimi-
natory.

“The fact that the United
States resents an alternative
market is something which
should give, food for thought to
the British underwriters,” said
Mr Aristomenis Kara-georgis,
President ctf the Union of Greek
Shipowners.

With profit margins declining
fast, be added, a shipowner had
to put sentiment behind him.
M He can no longer afford to pay

the higher London rates just
because his father and his
grandfather insured with Joe
BIbggs in tiie City.”

Greek owners, with one of
the largest combined fleets in
the world, have long been irked
at the London surcharge, im-
posed because of the view taken
in the City of Greek .operations’
relative riskiness.

Mr Karageorgis said the sur-
charge was not based on the
personal record of the man or -
company involved, “ but on that
of .a handful of Greek owners
who have not lived op to the
expected standards.”

Putting the U.S. view, Mr
Schumacher said his syndicate
preferred to make a more in-
dividual assessment ' of fleets
compared with the rule-of-
thumb approach of London
underwriters.

Commercial passage to India
becomes difficult

He said the coital and sur-
plus of companies . authorised
to . write marine insurance busi-
ness in the UH. was over $20bn
(£lLlbn). Yearly ocean marine
premium, written in the XLS.
was around $lhn. - The largest
block came from cargo busi-
ness, with the next largest from
hull business.'

Textiles

•"s

concessions

row grows

BRUSSELS — The - textile
. industry- organisation. 'Gosn-
.textil said - in a statement
issued .following ..its annual
: meeting; that it , will 4 femand
. EEC withdrawal. frtHn -Ihe
Multiffibre Arrangement
(MFA) if third counfri^win
too many . concessiohsvftpm
the"EEC Commission.

The Commission" has tfegun a
'series of bifitfeoal tMkS : w4th
28 deveikipfing! countries' on
their texts e ftude -wi^ 'the
Community,- during winch- it
is seeking to restrict gtowth
of imports.-* .

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6YK.K. 5HARKA IN NEW DELHI

IN THE aftermath of the Indian
Government's decision to revoke
a letter of intent for a L5m-
tonne steel plant given to
Britain's Davy McKee, one
Indian Steel Ministry official
noted: “There may be an
‘entente corcfiale’ between
Britain and India politically,
but we have to judge each com-
mercial transaction strictly on
merits.”

The official's remarks illus-
trate the increasing difficulties
British concerns are encounter-
ing m wanning major contracts
in India. Competition from
other foreign companies and
consortia is severe, and India’s
economic policies are changing
—not necessarily to Britain’s
advantage.

success in India is the 1,000 MW
thermal plant at Riband, the
turnkey contract for which was
awarded last month to a con-
sortium led by Northern Engi-
neering Industries (NEU). This
was based on an attractive
financing package and was
signed just before the deadline
for cheap export credits by
European countries expired.
Still pending is a related pro-
ject for development of an
adjacent coal mine.

pames for a similar contract
for which Britain's System X

is in the running. This' contract
ardea.

has still to be awarded, but the
French have an edge by winning
the first deal. " ‘

Letter of intent

The Indian ■ steel ministry
revoked the letter of intent,
arguing that Davy had unduly
inflated its costs. It subse-
quently appointed the Govern-
ment-owned Metallurgical
Engineering Consultants

(Mecca) as the prime contrac-
tor.

Except for these, major
British success in commercial
deals in India has been limited
to a flhu contract to British
Aerospace in 1978 for building
the Jaguar at the Bangalore
plant of Hindustan Aero-
nautics. The future of this is
uncertain in the face of India’s
decision to buy French-built
Mirage jet fighters.

The French now are far
ahead in the race to win turn-
key contracts India is still offer-
ing for a number of industrial
projects.

Both the British (BL) and the
French (Renault and Peugeot)
lost to Japan’s Suzuki for col-
laboration to build a new car
with the nationalised Maruti
Udyog, as did nearly a dozen
other automobile companies
from Europe and Japan.

Both are trying for parts of
the contracts for building the
Rs 6bn Nbava Sheva satellite
port of Bombay, although it is
unlikely a turnkey deal will be
awarded to a foreign company.

Davy, in its defence, claimed
that a cost review was unavoid-
able following a last-minute
change in contract specifica-
tions by the Indians. But the
Indian Government is unmoved.
Mecon has decided that domes-
tic suppliers now will supply
substantial amounts of work
and equipment for the plant,
most of them in the public
sector. Cancellation of the Davy
deal has put the steel plant
back three years, according to
Indian Steel Ministry officials.

Pechiney is setting up an
alumina plant in Orissa; CIT
Alcatel has just been given a
letter of intent for the first
electronic telephone exchange
factory even before tenders
were considered by ten com-

Other big contracts in the
offing are for at least eight
thermal plants of the kind NEI
has won. The next is expected to
go to Japan’s Mitsui, negotia-
tions with which aro in an
advanced stage.

Possibly the most prestigious
contracts are ta be won from
Indian Railways $900m scheme
to computerise its operations —
probably to be financed partly
by the World Barrie and for
which UJS. and European con-
cerns ore competing with
Indian companies.

TSB BASE RATE

With effect from the close of business ;

on Wednesday 9th June 1982
and until further notice TSB Base Rate
will be 12i% per annum.

■" '

TRUST!

SAVINGS BANKS

Central Board,

P.O. Box 33, 3 Copthall Avenue, LondonEC2P2AB.

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Rest of work

The rest of the work will be
opened -to outside bidding by
tender. Davy’s chances of win-
ning a share of this business
are seen as difficult, although
it and other British companies
could win orders as sob-
contractors if Mannesman
Demag of Germany tenders.

Davy’s loss of the steel pro-
ject is nevertheless a major set-
back. Davy’s success was in no
small pan due to Che fact that
Britain's Overseas Development
Administration (ODA) offered
060 m in aid linked directly to
the Davy project — and addi-
tional to bilateral p r o gramme
aid worth, f 140m in gross terms
In 1980BL

The only • recent British

9

Financial Times Wednesday June 9 1982

UK NEWS

Midlands sees
^ no sign of

^ end to recession

Onlr^ J [ ■* BY ARTHUR SMITH, MHJLANDS CORRESTONDHSIT

1 n^OUi>*j v KY LEADERS in the There was a lack of business
how - MeiJt * Midlands see no sign of an end confidence, little finance - for
aaj n y- h |„^ r-to me recession. stockbuilding and no increase

• prts :: Order? remain low, cadi flow “ orders. Export margins re-
sar hv Ct * 9 Is deteriorating and redund- mained low. Against fierce in*

3p( * s'indes will continue, Mr Chris temational competition little

3 ain\„ s Pin 3' - ‘Wallicker rftgrtrnap of die -'West growth in overseas sales was

l 71 Midlands council of the Con- expected.

■rapaa^ a i £ -federation of British Industry, Cash flow was deteriorating,
i,Q as ‘for ***> 1531(1 yesterday. particularly among smaller com-

peers, £ v - The Midlands, -with its heavy ??***■ They were being hit '
_'° r schJ?? V -concentration of manufacture “* n3etJ . 10 m j®*® ba

ff*] mg industry, has consistently S^“ °* !“ he JJ u £

b . ee* Jjh* ■ taken a more pessimistic view of J 3 ®. 1 y ^ ar s av ^ servants^ sth
-economic - prospects than feduodan^ pajments and c
d, there < national forecasts. Major struc* tomere taking extended cred

** >h at rural Ganges were continuing .^am^he comp “^ w

*° ol «tw* t * within the region, said Mr IS^iS^hSSS' nFrSn

™ tot • W allic fcer not get me. benefit of Gove

TTt> /U.Li ■»>«, ... ...i taaa. measures for smsU ci

! He a ted the forklift truck p^jes and were hit by
1 ■*-» mdustry where Japanese lin- credit nolloles of the iaree «

Iff tV|v ports take 40 per cent of the £Sies

SU |1 NT market compared withlO ^Some companies in the A

percent two years ago. Such a lauds were uneasy about

Cash flow was deteriorating,
particularly among smaller com-

The Midlands, -with its heavy They 4 were being hit by

-concentration

manufactur-

ing industry, has consistently °? held up by

taken a more pessimistic view of I 3 ®! 1 y ® 3rs servants^ strike,
. economic . m-nsnpets th»« redundancy payments and cus-

- economic - prospects than IT 1 ' “T " T F ““ ™

• national forecasts. Major stnic- tomere taking extended credit
rural Ganges were continuing 4 J t *? a F* b * comp ,^

: within the region, said Mr jj ^FthPiSSS’* f^rSJS!

• Wallicfeer not get the. benefit of Govern*

TTo -»v D i i nwnt measures for smaU com-

He a ted the forklift truck p^jes and were hit by the

v ^ re «i apa ff s % l?’ crecHt policies of Ihe large com-
ports take 40 per cent of the panies

..*XJK market compared with 10 Some companies in the Mid-
per cent two years ago. Such a lauds were uneasy about the
«• , rundown had an impact on the likely impact on wage bargain-
vehicle components industry inj» of large increases in the
that was so important to the public sector to judges and

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Midlands.

servants.

Activity and output remained settlement in the health service
r _ flat “There was some apparent would be watched closely.

‘ -improvement a few months ago, Most deals in the Midlands
" but that has now fallen back, were continuing at between 4
I would say we are still bonne- and 6 per cent “Settlements
v .iu£ along the bottom and I more and more reflect the
-expect -it to be flat for some ability of companies to pay, 1 '
months to come.” Mr Wallicker said.

' r . Mr Wallicker said recent “A disturbing factor” at the

^ .ing along the bottom and I more and more reflect the
.^expect it to be flat for some ability of companies to pay,”
months to come.” Mr Wallicker said.

gV. Mr Wallicker said recent . “A disturbing factor” at the
..optimistic growth forecasts meeting was that more than
~ seemed to be based on stock ' .half the companies present said
rebuilding. There was no evi- th^r expected to cut their labour
' „ dence of that in the West Mid- force during the next three to
'Mauds. four months.

Life assurance industry
defends doorstep sales

BY ERIC SHORT'

THE THREE life company trade
associations have . countered all
the. points about life assurance
selling made by Professor Jim
Gower in his . discussion docu-
ment Review of Investor
Protection.

• : ‘’Professor Gower, a company
4 -law expert and adviser to the
^Dgpartment of Trade, was com-
7* missioned last year to. review
jMtbe field of investment- services

ahd investor protection after a
"‘number of Investment company
^.^fdluies.

W first r^>ort, Jhi-the Jonn
. of. .av ..discussion ^document,,
" covered a' wide Tange of ihvest-
.meht subjects.' He was highly
.’^critical, in. particular, of door-
l step sales of linked life bonds:
- The Life OfBcers* Association,
the Associated- .Scottish Life
Offices and the Industrial Life
—.Offices Association; in a joint
i response, say that the life assur-
! ance Industry is already subject
. to adequate supervision by the
! Department of Trade.

• They feel that existing insur-
■ ance legislation already pro-
? vides effective protection for

the public. They do not acknow-
[ ledge the distinction made by

• Professor Gower between tradi-

• tional forms of life assurance

and linked life contracts, which
he wants treated as securities. I

The associations defend the i
sale of life contracts in the |
homes of individuals, pointing
out that the greatest number of
families obtain life assurance
protection by that means. They
point out that selling in. Ihe
home enables the family to dis-
cuss its savings needs and often
the agent creates a lasting rela- j
tranship with the family.

The present codes of selling
practice are defended by the
associations as providing effec-
tive ways to regulate marketing
methods. But they admit that,
if the codes, which are volun-
tary, were found to be unwork-
able, then life companies would
prefer a self-regulatory system,
as suggested by Prof Gower, 1
rather than full-scale govern-
ment control.

The associations would be
prepared to examine agreed
standards of competence for all
.sellers of life assurance, but
feel that' would be a long-term
operation.

Prof Gower’s recommendation
of a Pension Scheme Act is
rejected by the associations,
which consider his recommenda-
tions on regulation of pension
schemes remote from his terms
of reference.'

I Firedamp
j caused pit
; explosion

By Our Labour Correspondent

AN EXPLOSION which seriously
'..injured 40 men at a -colliery near
Glasgow in January was caused
_-when firedamp gas was ignited
,-at- the coalface by frictional :
‘-.■spar king , says a report published
^yesterday 7 , by the Health- and
y Safety Executive.

The r accident was at the V52.
i face of Cardowan Colliery, which
: normally produces about 6,000 i
.-■'saleable tonnes a week. The gas;;

mainly methane. buHt up in a
-■ part of the pit which had been
: flooded, said the report. - ,

r Tfrhen some water was jumped ;
'-out' a measure of gas escaped. :
Tests then did not show an ex- ]
-cessive amount- of gas. .but it is
thought .likely .that gaa reached'.

II the’ c oalf ace 10 or 15 minutes

-..later. . , •

it was ignited by frictional
sparking fti&n.'tbe picks of the
. mechanised shearer- loader cut-i
"ting into the sandstone floor. The
report recommends further
--research into frictional sparking,
and that firedamp dispersal be
given priority. .

The Explosion at C enodowan

Colliery , . : Stepps, Strathclyde
Red ion, January 27 1982. SO.
£250). .

Travel agents ‘^ikk duty’

BY RAYMOND SNODDY

TRAVEL ‘ AGENTS nwy- be
shirking their duty to tell
travellers about' health care,
according to BMA New Review,
a tnonlhly magazine aretdating
to more than 60,000 doctors in
the^UK. w

Magazine staff visited eight
travel agents In central ^London
saying they -planned to go to
Egypt in Septahber ‘“d' asked
what medical precautions should
they take. ••• '

Only one Tecommendea vac-
(anations for cholera, typhoid
and- pwa-typboid, although the
Department of Health •. and
Social Security advises that all
tritveOare 'dwuld have these

Challenge to
minors’ legal
protection

By Raymond Hughes,

Law Courts Correspondent '

A ■ RADICAL suggestion that
the age of legal liability for
young people entering contracts
might be reduced from 18 to 16
has been made by the Law

Commission.

The commission says, in a
paper published yesterday, that
minors may not need the pro-
tection from imprudent con-
tracts- which they have under
present law.

A person under 18 cannot,
with certain exceptions, be sued
for breach of contract although
he .or she can enforce a con-
tract

. That says the Commission, is
because the law considers that
minors need to be protected
from their lack of maturity and
worldly experience.

The present law may be
Inappropriate to modern condi-
tions, the commission says.

It offers two suggestions and
invites comments from older
schoolchildren, teachers and
others able to advise on the
maturity of 16 and 17-year-
oMs.

The first broadly, is to main-
tain the present situation; the
second, to reduce the age of
contractual capacity to 16.

The commission suggests
dividing minors into two
groups: those aged 16 and IT.
who would be fully liable on
their contracts; end those under
16 who might need more pro-
tection

How losing a job brought life to a doomed concern. Raymond Snoddy reports

Shedding new light on Eddystone shipyard

EDDYSTONE Marine Services,
a shipbuilding and repair yard
at Newton Ferrers near Ply-
mouth, finally closed last Sep-
tember.

. It had been in decline for
some years and at the end there
was only the nucleus of the staff
— four hoatbuOders and engi-
neers — to be laid off. Nine
months later the four are build-
ing boats again at the bead of
Newton Creek. The yard is in
the black and, until recently,
was working a . six-day week to
get boats ready for the season.

The transformation came
about because of Atan Burn, a
former director of management
information at EMI. He was
made redundant following the
Thorn takeover and decided at
the age of 60 to buy the yard
and run it along co-operative
Unes.

He raised £130.000 by selling
his house at Bray, Berkshire,
and using redundancy pay and
bank loans -to buy the yard
which is a 200-year-old malt
house.

The yard has the capacity to
build 36-ton ships and, already
this year, it has turned out a
21ft Drascomhe longboat and
several dinghys.

" There are 2S0 boats moored
in this river and we fed there
is no need for them to go any-
where else and we have already
started getting a few from
Plymouth," Mr Burns says.

His plans for the yard are
more ambitious. He has just

: . • V ' *

■'V .-a?,-.

;

Alan Burn— building a new life and reviving an a ili ng business

launched a 24-hour, seven-days-
a-week pick-up service for
boats needing repair. The ser-
vice will start locally and ex-
tend gradually to* covet the
coast between Helston, Corn-
wall and Torquay, Devon.

“It could develop into the
marine equivalent of the AA or
RAC along that stretch of the
south coast, ” Mr Burn says.

He will travel by Land
Rover to the nearest point on
land and then use an inflatable
dinghy to tow damaged yachts
to harbour or repair them at

sea.

Mr Burn .will take along a
mechanic if an engine will not
start He can call on the services
of a diver if underwater re-
pairs are necessary.

Mr Burn believes the service
is the first of its kind. He plans
to run it on an annual subscrip-
tion basis next year.

Eddystone Marine Services is
also planning to enter the yacht
chartering market and is hop-
ing to get the fitting-out con-
tract for a new fast racing
yacht to be produced locally.

Alan Burn has been involved
in four takeover battles and won
all but the last. He admits that
if he had not lost his job he
would probably have been con-
tent to stay until retirement,
looking after EMI’s worldwide
computer operations.

“ It was appalling at the time.
It was shattering, but being
made redundant was the best
thing that ever happened to
me,” he says.

The sea was a natural place
for h*m to turn to. He was a
navigator and gunnery officer

in sloops and destroyers in the
Second World War. and was
chief officer on a Chinese mer-
chant ship on the Yangtze River.
One he was even part-time chair-
man. of a boat building company
in Cowes. .

He has taken part ra the
Transatlantic, the Sydney-
Hobart and five Admiral’s Cup
yacht races.

He chose the West Country
for an eight-month search for
the ri gh t yard because of his
connections with the area. Sir
Clive Bum, his father, was
secretary of the Duchy of Corn-
wall from 1936-54.

Alan Burn went on an experi-
mental 16-week course on co-
operatives before setting up on
his own. The course was at the
Manchester Business School and
paid for by the Manpower
Services Commission. His fellow
students included a black pop
group, shoemakers from Wales
a nri a health food cooperative.

He then bad to outline his
plans to a panel of six local bank
managers and received the
ultimate accolade-^-aU six said
they would lend him money.

Alan Burn decided to run the
Eddystone Marine Services as a
cooperative because he thought
working relationships would be
better and because he wanted to
share profits but, most
important, he wanted to ensure
it was impossible to be taken
over. He is now considering
taking on an extra band under
the Youth Opportunities Pro-
gramme.

Shipping
group seeks
hearing

By Our Law Courts

Correspondent

TRADE AND MARINE, of Ham-
burg, a member of the Gulf
Shipping group, is to seek an
early hearing in the Commer-
cial Court of -its dahn that a
ship it chartered was wrong-
fully withdraw! from its ser-
vice.

The company is claiming
about $77,600 (£48,000) loss of
'profit from Anangel Glory Com-
pania Navi era, a member of the
Piraeus-based Anage) Shipping
Enterprises group, which with-
drew the 22,670-ton bulk car-
rier, Anangel Glory, in .1979 for
alleged non-payment of hire.

Trade and Marine denies that
it defaulted on ihe hire pay-
ments, and the case will involve
consideration: of both banking
practice and methods of- pay-
ment of -charter hire.

Last month, Anangel was held
in the High Court to have suf-
fered losses totalling $77,400
when a fresh charter <£ the
vessel it was negotiating, after
the withdrawal, was frustrated,
by an -injunction to stop it
withdrawing the vessel from
Trade' and Marine.

plus polio vaccinations. TTie
other seven agents said only
anti-malaria pifis were seeded
when visiting the NQe delta
between Jose and October,

' The magazine says there has
not . been a single order from a
travel agent tor copies of the
British' Medical Assocation’s
Family. 'Doctor publication
Health on Holiday, published,
.recently, '

. Some. Wg travel companies
give good advice but “it still
appears that you have to be an
.aware and persistent person to
find out even the "most basic
holiday health care precau-
tions, 0 the magazine says.

Albyn House is Conoco’s Northern
Operations training centre.

Step into an air-conditioned room there
and you step into the control room of an oil
platform 120 miles out in the North Sea.
Even operational noise has been recreated by
a Redimision Simulator.

The sim ulato r allows Conoco operators
to gain experience in dealing with any
type of production situation, including
emergencies, without risk to personnel or to ,
the pbttfortn and without losing valuable
oilproduction.

lb train operators, the simulator was
built ahead of the platform it recreates. As
an additional benefit, it can be used to
assess the likely effects of changes in plant
and procedures as more becomes known
about the performance of the oil field itself.

Itk one of many spin-offs from
Rediffusion’s aircraft flig ht simulators and
it’s typical of the way Rediffiision puts elec-
tronics to work.

As a leading British electronics company
with a £250 million turnover, we’re equally
far ahead in c ommuni cations, TV, recorded
music, desk top feleputers and navigation
systems.

We’re heavily involved in British Tele-
com’s National ‘Paging’ system for example.
We designed and installed the intercoms,
sound systems, closed circuit TV and record-
ing studio in London’s superb new Barbican
Arts and Conference Centre.

Currently we’re in the forefront of
video programming and the development
of national cable TV in the UK.

Ifyou would like to know more about
Rediflmsion, write for a brochure to the
address below.

Moving the North Seals nothing to
what we’re planning for yon next.

REDIFFUSION

RB3]FFUS10HCy\FODNH(XJSE;LOWH3f^^

WE'VE MOVED
THE NORTH SEA

INTO ALBYN

HOUSE, ABERDEEN.

* ' ^ !

>ca *>'•

'X

r m 5

■ l

■ 'b 5

i nn

-•.'S v.V-v • «..i

* . ♦ r ^

A,

Financial - Times Wednesday June^ S l^' - ; ’

UK NEWS

British Gas banned from
exploration of oil areas

by RAY DAFTHt. ENERGY EDITOR

BRITISH GAS Corporation is its search for natural gas.

The Energy Department bad

Index-linked
savings plan
announced
by Alliance

£ 60 m electronic aid plan

BY JOHN ELLIOTT, INDUSTRIAL EDITOR

being barred by the Government The corporation, which is hoped British Gas would sell its ** Eric Short

from exploration of areas of planning its startegy for appli- h^if -share in fee Wytch Farm ygj. Altianr e Building Society,

the UK continental shelf which cation in the eighth-round of field by the end of March. De- ^ seventh largest, announced

are expected to yield oil.
The corporation was

exploration licences, to be toys in drawing up fee offer fee firetlndexinted

offered this summer, said last document have meant a post- investment scheme for budding
night that it was “disappointed ponement Sn the sale. The docu- sn-ietv investors,
by the announcement. meat Ss being discussed with • v , . . .

It said that it was often dlffi- d ep art m e n tal officials and could Th e of the investment.

yesterday the first index-linked

yesterday that it must limit its night that it was “disappointed'
applications for new licences to by the announcement.

areas likely to yield natural gas

— : in essence, the southern sec- cult to tell whether an esptora- be published vritiun weeks.

tor of the North Sea.

tion well would locate oil or

The move, announced in the natural gas. The two materials
Commons by Mr Nigel Lawson, were often found togettor. TOo ’^2? £*■ SS

Dublin Correspondent

The value of fee investment,
under fee Alliance • . Index-
linked Certificate, - win be
increased in line wife fee Retail
Price Index over a . five-year

A £60 M AID scheme aimed at
encouraging engineering com-
panies to automate production
lines with electronic techniques
was launched yesterday by the
Department of Industry.

It is the latest of a series
being developed by the Depart-
ment to boost investment in
advanced technologies. .

About £45m of fee £60m is
assembled from the. Depart-
ment’s existing aid allocations.

The other £15m is extra
money provided from fee

work ate? automatically con-
trolled by a central-on-line com-
puter. Other work, areas and
flow of components and tooling
are also controlled by the
computer.

“ It is estimated that at least
70 per cent of fee output of
the engineering-sector involves
batch production, and flexible
manufacturing offers ' immense
cost and quality benefits." Mr
Kenneth. Baker, Industry Minis-
ter responsible for information

ness, not just national prided- - mated between,. £im and £5m.-
we do not want 'to develop' They come from manufacturers

white elephants

Sir Jack Wellings. chairman
of fee 600 Group winch has
pioneered work in flexible auto-
mation^ told engineers at the
Industry Department: “ This
scheme will allow you. to have
a go, to take a sniff, and to see
if you tike it”. •

of diesel engines, mining: equip-',
meat, : vehicle components,’
central ' heating , and: domestic
appliances. . j

- The £&0m will Wtiivided.into
two parts.' Some £25m. wiB go'
to highr-risk. projects ^throa^n
fee Department’s, requirements
boards, administered under fee

from fee Department covering
50 per cent of cost, of consul-

technology,,

Government’s £130m innovation when be launched fee scheme.

yesterday tancy studies and up-, to 33J

the Energy Secretary, is the
latest in a series of proposed
restrictions on the corporation’s
oD interests.

Mr Lawson said it was still
the Government’s intention to
force British Gas to dispose of
its existing oil production assets.

Frigg Field— one of the most ™ investment period. A bonus of

important discoveries of natural newiy-il censed ^ blocks off the iq per cent of fee original
gas in fee North Sea— had been west coast^of Jraa nd. a k also investment is added after the
found in ah area previously to soppy fee Irish state oH bom- five years. . .

“ oU - S3. 1 * «■; .^linked addition

On the face of it, the restric-

tions present problems for fee 'Hb® deals were announced in

The index-linked addition
would be free of income tax,
investment income surcharge

1 package announced in the
Budget.

The £60m will be used to
boost flexible manufacturing
projects in which machine-
tools for engineering batch

H6 Stressed feat fee Govern-
ment did not want to encourage
building of “massive national
showpiece automated factor-
ies." The scheme was aimed
at “ encouraging .competitive-

per cent of development arm
capital equipment costs- for a
new system.

About 20 projects have been
submitted, for approval. Two
are budgeted to cost about
£20m each but most are estl-

and * £35tn be spent under .
Industry Act criteria,, on m om
coirventjohai-projects:^ *' ? ;

Admmfetration^ftireDepart-
ment’s . aid for instaUatUra’ . of
robots, part of an existing flOur
robotics . scheme, •;&. .'befog
absorbed- . within .. /.the.;. .. new
arrangements*. . - .

Its exisuns on production assets, UUIUS Jiieacui jjiuuicuu *U 1 me ——— - ----- — " — __ J <n mn<rf MCK ranital traffic

which include its half-share of newly-formed consortium of Dubtin ia^ nlghL Hie four W rJji(j he

j TT- -> y,a mwku rwi 'Pho blocks m fee Pownmrne Tlasin tax. .me oonus wouia oe suojecc

fee important Wytch Farm British Gas and Mobil OU. The blocks in fee Porcupine Basin
Field in Dorset and stakes in corporation and fee UJ5.-based. wiH represent BNOCs second 1:0 _ gner 1316 TOX -

Export of services down 3% by volume

fee Beryl, Fulmar, Montrose, oil group have agreed to bid exploration venture outside the
Hutton and North-West Hutton for eighth-round licences. It is UK.

fields off-shore. understood that fee joint-ven- The corporation has also

■ Mr Lawson added feat British tore will relate only to explore formed

corporation

pa rtnership

fee This challenge to .granny
bonds, as fee Index-Linked
also National Savings Certificates
wife are commonly called, is possible

BY MAX WILKINSON, GOONOM1CS <X>RW3PONOBfT

BRITAIN’S exports of services imports of sendees fqH by About

Gas would also be required to tion blocks which are likely to Atiantie Rtohfiefld to drill for because of the capital gains tax

sell any oil it might discover in bear ags.

oU and gas in Bubal.

BP sells
diving
group stake

No limits to be put on
North Sea oil production

b£a£Tof fee^SKSl aSETte £. ^ ** tlfiee months of
changes in this year’s Finance

gjri ftvcrsgc of last yesr, scconzms

The Alliance index-ffifeed

certificate offers double fee BeJSLSJrfSto? 25 5 * 0 $, i™
maximum investment— £10,000

against £5.000 for enrnnv hoiidi TCfiH. trzve}—

fell by 3 per cent by volume 2 per cent in fee first quarter
in the first three months of of this - year, against fee
this year, compand to the previous quarter,
average of last year, according The volume of services is now
to official figures out yesterday, about 1 per cent less than it
Last year, earning s from all was in 1975, and 10 per cent
services — including shipping, less than feat achieved in 1979.

though, improved slightly in This- compares to mi average pf-
the fourth quarter, wife a 6 per about £2_8frn per ^quarter - ; in
cent reduction in fee number ' 1981. However, overseas, invest-

cent reduction in fee number 1881. However, ov erseas , invest,
of Britons travelling abroad, meat in the UK private sector

BY RAY DAFTER, ENERGY EDITOR

against £5,000 for granny bonds
— and a higher final bonus —
10 per cent against 4 per cent,
although the granny bond bonus
is tax free.

The certificates wifi become

R« Richard iahn* OIL PRODUCTION from fee all-party committee suggested available , once the Finance Bill

7 J North Sea will not be restric- that it was in fee national becomes law, probably at the

BRITISH PETROLEUM has sold ted, the Government has interest to adopt a “ repletion ” end next month. Alliance

its half share in Sub Sea Inter- decided, even though output is policy— aimed at encouraging eipects initial demand to be

all-party committee suggested available once fee Finance Bill
that it was in fee national becomes law, probably at the
interest to adopt a “ repletion ” en d of next month. Alliance

national, the world’s third lar- well in excess of UK consuinp- further development of offshore

gest diving company, to Ocean tion.
Drilling and Exploration, its ^ Ni g (
former equal partner in fee Secretary,
venture. yesterday

The price paid for BPs stake wonifi be

ore about £3m to £4m a week and
tion. areas— rather lhan opt for believes fee certificates will.

Mr Nigel Lawson, fee Energy short-lived restrictions £55*, 81 least £10Qm 111 12

Secretary, told the Commons . p«,an « Mr Tjiwviti indiMtpd . , ,

yesterday that the oil industry ™ JSf'S “ “21 ble ?

would be left free from deple- HoQ . eouldhe^ed as fee certifl.

*^,1= 1 options wmen couia oe usea as cates for mortsace lending

contributed £16.9bn . to export
earnings and £4.1hn to fee bal-
ance of payments sirphis.

In fee first three months of
this year, earnings ‘ from
services fell by 'about } per
cent, compared to fee previous
quart e r , to £4.38bn. However,
the volume of services exported
fell more sharply, by neariy 4
per cent, in the period. The

By contrast, fee volume of im- was a 5 per cent u
ports of services has risen by fee number of o verse
12 per cent since 1975, and by to fee UK, although
about 4 per cent since 1979. also spent less on aye
The new figures show a sub- The figures also
stantial fall, in* fee first quarter deceleration m fee
in fee earnings from tankers, overseas investment
compared to fee average for institutions. The b.

and lower average spending Increased
compared to fee first three fl'.lbn.
months of 1981, those who There 1
did travel. Against this, there fall in tl
was a 5 per cent increase in currency
fee number of overseas visitors ing by U3
to fee UK, ^though each one in fee las
also spent less on average. •' to £1.4bc

£450ttt>''to

There was also a sitostairtial
fall in fee balance 1 of: foreign
currency borrowing aiff’.ieaid-
ing by UK banks^fraitn £2jSbp
in fee last three monfes of 1981
to £1.4bn m fee first three

The figures also 'suggest a months of this year.

stantial fall, in* fee first quarter deceleration m fee rate of T?ie overall outflow on- fee
in fee earnings from tankers, overseas investment by the capital account for fee fin*
comp ared to fee average for institutions. The balance of quarter was £322m; wiucJrcarfH
last year, although there was UK private investment overseas pares to .an aveBTage-octfkw'^oi
little change in -fee earnings in fee first quarter foil by about &bn per qnarter r :.Tasf
from dry cargo. £835m, . compared .to the year, and of aboui: £450m : j^er

The balance on travel, previous quarter, to £2^bn. quarter in 1980.

little change in -fee earnings in fee first quarter fe&l by
from dry cargo. £835m, . compared to the

travel, previous

balance

originally acquired in 1976. has tion controls until at least fee ? tes for mort ® a ^ e lending

not been revealed but it is e “ d 0 7igs4. depletion measures: fee ri^it because it cannot offer Index-

understood to be about $20m. . to delay fee development of new linked mortgages. So to matr-ft

-BP’s latest sale is in tine The announcement wwlmme- fields— an option vdach would the liabilities of this new

with its policy of divesting it- lately welcomed by fee off- be considered on a caseby-case scheme, investment will be

self of service ventures. BP s “ ore ** " - * * - - — - —

Money supply growth on target

BY MAX WILKINSON, ECONOMICS -CORRESPONDENT

self’ of service ’ventures. BP ba^isj-and the rigbttorestiict specifically in’iDd^iinked'gilte; GoVaTimmt i r"targrt "range 7n

said it intends to keep a close Passed fee Government to field development projects which primarily fee Treasury 2 cer fee three months since
connection with Sab Inter- jUow^ductiou to continue un- were to waste gas pro- ?ent 19^ stoSt. ^ ?elrua^?ccor^ to piS

national and continue develop- ^ndered. duced wife otl. Affiance has already bought nary esfenatesT^m fee Bank of

ing its own expertise in off- Under depletion measures ■ ^ . Lawson recently £22m of this stock in order to England yesterday. -

chnra tnr»hrirtlrwn7 nnt iddH in TQ71 I nr Fwn . . « ^ a * j ■*

THE UK money supply has
grown at a rate well within the
Government’s target range in

national and continue develop-
ing its own expertise in off-
shore technology.

hindered.

Under

depletion measures

outlined in 1974 by Mr Enc announced feat production from | meet initial demand.

News of the transaction Variey fee then Energy Sewe- ^ Nor th Sea had passed fee Mr Roy Cox, chief general

followed a day after fee tary — the so-ca;
announcement that BP had sold Assurances’’ — fee
its stake in the North Sea has fee option t

so-called “Variey

—fee Government

England yesterday. -
It said feat sterling M3, the

MONEY SUPPLY GROWTH
February to March annualised
■ percentage increase
Sterling MJ - 10

PSL2* • *ltol0i

Ml O to i

* Private Sector Liquidity

1 notable milestone

manager of Alliance, believes broad measure 'df money which

Assurances’’— fee Govemment b ^ day^-fee equivalent this breakthrough in' building “dudes interest-bearing w U ch deludes buildinz sodetv
5SLS*.Pfi!L.2..l e ?22. t & of loom ton^T . ylT. Thi, oocie,, inv^S wffl wift brnAs, prrt.bl, ^ S

Beatrice Field to London and output of individual fields by commres wife lastvearis

Scottish Marine Oil for £75m. ^ 00 — — * ^ ontpui compares with last years

Scottish Marine Oil for £75m. up to 20 per cent The Gov- of jS 7l?m

Turnover of Sub Sea Inter- eminent could have begun nn- tmmfSjT ■ ■

national, based in New Orleans, plementing such restrictions at' r

is running at about $60m a year, fee beg inning of ihis year. The amount of net exports is

It is engaged in a broad spread Mr Lawson said that freedom expected to Increase in the next
of exploration, construction and from depletion controls would few , years. Little growth is
maintenance activity, mostly in allow the oil industry a firmer* foreseen in UK oil demand, but
the North Sea. Most of its 800 base for its exploration of and the Government expects output

many investors seeking a simple
approach to index-linked
schemes.

the Government expects output

employees are British..

investment

UK to rise to between 90m and

It is the fifth sale of its kind Continental Shelf which would 115“ tonnes ip 1983. to between

made by BP in the past year —
including Vikoma, which is
involved wife oil slick control

help increase oil supplies in fee 95m and 125m tonnes in 1984

1990s and beyond.

He said the decision was also

and to between 95m and 130m
tonnes in 1985.

systems and equipment, and in line with fee conclusions of According to government and

Increase in
output of
houses

grew by about 1£ per cent in
fee four weeks to May 19. This
would represent a growth of 10
per cent at an annualised rate
since February, compared with
fee Government’s target range
of between 8 per cent add 12
per cent

It is suggested that fee
broadest measure of money

deposits. Private Sector Liqui-
dity 2 (PSL2) may have grown
by between i per cent and i per
cent in the banking month of
May.

The narrow definition of
money, Ml, which includes
.notes, coin and cheque accounts
•wife banks, also grew by about

of less than \ per cent since
February.

According to the 'monthly
statement by fee London clear-
ing banks yesterday, their lend-
ing gre why £384m in banking
May, which suggests an under-
lying rise of about £600m to
£650m for fee month.

In the. three months to May.
fee London dealing banks in-
creased their lending by
£3.59bo. Much of it represents
advances to the personal sector

In recent months, total bank

‘Pirates of
Chittagong*
test case
for insurers

By Raymond Hoghes,
law Courts Correspondent

A RAID by armed men on a •*
ship anchored off fee Bangla-
desh port of Chittagong- has
led to a test case on marine
insurance in Urn CbnmtertMl
Court in London.

lending to .fee private sector Tfa ( e

has been increasing at the rate
between £l}bn and £2bn per
month. When fee final figures
are available for May it apears

*ri per cent in May. which sug- , Hkel ythat they .wffi. show a
gests an annual rate of growth fall to the rate.

Omisco. which is engaged in off- a recent report by fee Commons industry projections offshore By Michael Cassell

shore maintenance

Energy Select Committee. The output will fall In the late 1980s.

Equity settlement system studied

Gasco actions
defended

Car production ‘flat’

BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT

SAVINGS and Investment Bank, .v™ __ , ..

fee Isle of Man banking group, “ Ap £L* Jld la ’ 900 m stnfetorn

is defending two legal actions

normal working last mouth and
output bounced back from the

May 1981.

THE RECENT increase in
house-building was maintained
in April, according to figures
published yesterday, by the
Department of fee Environment.

Provisional estimates from
the DoE suggest that a start
was made on 18,000 homes dur-
ing April, fee fourth successive :
monthly increase. It was the I

BY JOHN MOORE, CITY CORRESPONDENT

THE

ruling

STOCK

council

EXCHANGE It proposes that shareholders

comm is- would be able to maintain un-

immediate confirmation of
holdings and pass on transfer

sioned a feasibility study to certified accounts on a com- instructions to company regis-

establish fee cost of developing party’s

and operating .a streamlined transfers of ownership taking

settlement system for deals place without a share certifi-
carried out in equities'and com- cate. -

started by Mr Jim Paper's In fee first five months com- qm month

master company Gasco Invest- raereiaI vehicle output rose 21 November 1970 **

disputes hit both Ford and BL. per cent, from 93,800 to 113,600. 1 INOVen,Der

-master company Gasco Invest-
ments on Juoe 4. The bank will
contend that all requests for

pany fixed-interest securities.
The move follows an exten-

tny’s share register, with trars in a form convenient to
ansfers of ownership taking them.

ace without a share certifi- Private shareholders would
te. • • nonnaily participate only

Banks and stockbrokers acting

ax « 53 s? 5 flsssas

*“g».S».« gS~!!! t J&Sr would te abIe\o authorise the

° 2 St transfer of shares. by oompufor X * "ffSSSS

Department of but 1981- witnessed the lowest

advances to Gasco under the Industry suggested yesterday level of production since

In fee private housing sector,
where activity appears to be

loan facilities have been met that “ the underlying level of records were first kept in their

The litigation has been started production is probably, at best, present form 40 years ago.

by" Mr Raper following Savings broadly * flat *nd a little lower The department suggests the
and Investment Bank’s proceed- than in the second half of last latest figures show “ a ceil-
ings for loan repayments and its year. ’’ timiation of the modest recovery

successful application for j an Recorded car output in May

injunction against Gasco and St was gO.OOQ compared

Pi ran in March. That injunction 65.000 in April and only 55000 w ^nzuupiou aparKiug nug, me
5 5 rce - in the same month last year, UBxiwned group .will expand

One . of the actions launched also a period when ^ motor its two plants at Upton, Wirral,
by Gasco claims vanous declare- industry was badly affected by Wlth * e hel P °f department
tions regarding loan ^fariUBe, inliust ri al disputes. ...

timiation of the modest recovery
evident from fee middle of last
year.”

• Champion Sparking Plug, fee
U.S.-owned group, will expand

accelerating ^ th e year pro- at ^ Committee on equity ZZfo&wZTio a centrai would, be a voluntery

grasses, it is estimated that t wm ^ xppointedby Sir settlement office. service for investors. The

work began on 13,400 homes, a Nichotas Goodison in Septem- present arrangements will con-

marginal improvement cm the ber l980, 8X1(1 has now P 1 ^ office would maintain tinue for those who wish to

nrevinns mnnth Thp haianrp sented its final report. records of ownership to provide retain their certificates.

arranged wife the bank, and an T „

injunction. The other action, ^ ou ^"

in h* timL uine put reached 402, 0C0. or 2.8 per

also m relation to those loans, oai nnn e—

““"“J «**KVVVU t

“S 1 monlh , nnt Most of the investment will

It 2 9R npr P rovitIe * at the ceramic

Plant to meet the company’s fufl

grasses, it is estimated that setoiement was appomiea oy ai:
work began on 13,400 homes, a Goodison m Septem

marginal improvement cm the has now pre

previous month. The balance sente< l “ nal raport.

was accounted for by the public — 1

housing sector.

In the first four months of r F/\/\Uwi/\| /v<
fee year, the total number of I If If

homes on which work began A VVUUVlVj
reached 63.000, compared wife
45,500 in fee equivalent period BY TIM DICKSON

Porting to the DoE, total A "W EEKLY technol ogy mag .

Technology magazine to close

starts in the quarter to fee end

SSnTdSaiS ConSStoS cent more than fee 391,(KW tor aftCT f**™*

euto mmemneement byMr Jim the January-May period of 19SL fetor^rt of which now

Raper on June 3, as published Recorded commercial vehicle from the U^.

in good faith in our issue of output also recovered in May.

Jitoe 4, fee amount of damages
claimed is as yet unspecified.

Production of 23.700 com-

Champion said yesterday that
fee move would give job

than in fee preceding quarter
and 45 per cent higher than a
year earlier.

zine launched at fee beginning
of February will suspend publi-
cation after this week.

Technology Week, which
carries news and comment on
new products, technological in-

MILTON KEYNES Web Offset
has announced that It fs to
close, with the loss of more
than 80 jobs, writes Raymond
Snoddy.

mercials compared wife 20,400 security for fee 800 at Upton.

But fee construction industry novations and applied science,

This Advttrtteamvit is rssuod in compBinca with ttm rattuinmsnta of the Count* ef Tha Stock Ex ebsoga

completed only 12.100 homes to
April, against 15,700 in the
previous month. A year earlier,
the total was 14,200.

. The DoE says there were 2

was started wife the help of
£45,000 from Williams Sc Glyn’s
Bank backed by the Govern-
ment's Loan Guarantee Scheme.
Mr Nicholas Leonard, the

The company prints the
Baptist Times, Catholic
Herald, Soviet Weekly and
West Indian World.

per cent more housing comple- publication's owner, said -K had

previous I consistently failed to achieve

Just over two months ago,
the company took on a three-
year contract to print the new
newspaper of the Central

Electricity Generating Board.
It also printed Pni News, fee
newspaper of Prudential
Assurance, Automart and
Publishing News.

Customers received a letter
this week which said: “ We
have been malting losses for
some time, and circumstances
appear so unfavourable to fee
short and medium term feat
it leaves no alternative but to
take what is an unhappy but
inevitable decision.”

quarter, but 21 per cent fewer its 20,000 circulation target. It

Dencora pic

than a year earlier. The Depart-

Mr Leonard said yesterday he The Government, however,

ment also reported estimates initially, but this bad fallen to felt he underestimated fee pro- will not have to nav uo for thp

U’hi»4i cIlOOKt ttiat 17 7flft hnmsc AIW1 mntlAntl pabIc noA^nJ a. 1 r ■

which suggest that 17,700 homes
belonging to local authorities

motional costs needed to- launch original loan. W illiams and

Mr Leonard, who has a ' nuro- fee venture. He remains con- Glyn’s took a debenture on fee

(Registtlmd in England No. 1519031)

and new town corporations were ber of other business interests vtneed there is a market for this

converted

improved

including directorships of type of publication.

England during the first quarter Independent Newspapers, Fitz-

SHARE CAPITAL

of the year, compared with
14,400 in fee last three months
of 1981.

Authorised

£

3,500.000

Issued and

wilton and Atlantic Resources,
is negotiating wife two potential
buyers.

Mr Leonard could lose
£120,000 of his own money —

this assets of the company, which
are more or less equal to fee.
lose amounts owed to creditors. i
sy — ' Technology Week employs I

Technology Week’s estimated eight people based at its East-

net deficit

bourne offices.

to decide whether -fee raiders
were pirates, whose activities
came -within the -insurance
cover provided ' by the rules
of fee -HeUeoic Mutual. War
Risk Association. (Bermuda)..
In . Junb l\ 1977 - fee * Andreos
Lemos, owned-'!, by . .Atoms
. Maritime Enterprises: Cor-
poration,'' was anchored ' in
Bangladesh territorial waters,
3| miles offshore-, in the Gbit-
tagong.Roads. .. - '

She was boarded hy six orsevjm
people armed wife ‘ long
knaves, .who stole ‘ mooring
ropes and other equipment *
valued at US$ 5.754 (about -
£3,200) before being repelled

* by fee vesseTs crew, one 'of
whom fired rockets

Athens Maritime claimed inxfeir
Its insurance with HeUeme, .
asserting that fee ship's gear '
was lost as » result of nelfeer
piracy, riot or persons actmg
maliciously, all of which were
' covered by the association's
rules. ‘ ,„*'

The association Jtifected- fee
claim, saying feat fee loss . was
not covered by the rifles. ;

Mr Anthony HaBgarten, QG; for
Athens Maritime, told- Mr :
Justice Staughton that : it had :
been a fairly prosaic piece of
piracy. ’ " ‘I 1 -'- -

He said that piracy was defined
in a case in 1696, involving -
taking of a. ship to the East
todies, as “robbery cojpmdt-
ted within fee jurisdsetioaraf
the Admiralty."

That jurisdiction was - pic- , ,
turesquejy defined to English
law as “ places where great
stops go." . , : .;

The association, said lir -Hall-
garten, argued that the raid-
on the Andreos Lemos; had

• the character of theft rather
than piracy, and feat in any
event an act of piracy copld
not be committed 'within

. territorial waters.

Mr Hallgarten suggested that
such a distinction between*
territorial and non-territorial
waters was artificial ■'-*-
It would be .strange, he said.-
if an act were piracy if -com-
mitted just outside terr i torial
waters, but not if it ocetored ’
a few hundred yards nearer
__ the shore.

The hearing continues today."/-'*

■ rg-*

1 >Vl

In Ordinary Shares of 25p each

to ba issued
£

3.025.100

Placing by
PHILLIPS & DREW

of 2 . 100,000 Ordinary Shares of 25p each
at 58p per share

British Shipbuilders faces fight for orders

BY ANDREW FISHER, SHIPPING CORRESPONDENT IN ATHENS

Dencora pic is the holding company of a group primarily involved in the
development and the retention as investments of small industrial and wara house
units in and around the major centres of population in East Anglia.

BRITISH SHIPBUILDERS
will have a struggle to meet
its reduced £10m loss target,
set by the Government for
the current financial . year,
because of a marked slow-
down in orders.

AopOcation hu bean mad* to U» Counci of Tha Suck Exshmes far tfw nutnia of Km tnoad ctiaM capital of tha Company
®o be admUtod to Um Ur Estad SacuWas MatfcK. A prapaitnn 61 ihm ihm tong plscad to mfefcto *o tha pobfic iteeugh
tha matfcat. h Is atnp ha a iia d tha no appScnian Iws bwn mad* far than aacuntaas to te actorinad to tha Official Ust.
Ptrtcutar* of tha Company or* ovriabia in tha statistic^ saniicw of Extal StstMesl Sanaa aid copies ef aadi potiedara
may ba ebtamad dnine usual burinan hows on any waaMayCSttuMteyt and Bank hoUdeyi atcaptad) up to and ndo&n
23td Juna. 7982 fionx

Phiiiips & Draw,

Laa Houaa.

London VMS.

London EGZY SAP .

Dencora pic,

Liayda Sank Houaa.
Exdianpa Sqnan.

SulfcftNIWSHH

9th j«i* 1982

“We’re .in for a difficult
year,” said Mr Robert Atkin-
son, Its chairman, during the
Posidonia shipping exhibition
in Greece.

The nationalised group has
reduced its trading losses -to
recent years. Figures for the
financial year to March 31 will
show feat it was within its
£25ra loss limit. There was a
deficit of film a year earlier.

Mr Atkinson said British
Shipbuilders was having to
fight for the few world ship-
building orders available at
absurd prices. At fee end of
March the order book was

just over £3bn, of which two-
thirds was for warships.

The merchant ship order
book stood at £680m. That
was after a year In which
the order inflow had risen by
some 50 per cent The remain-
ing orders were for engines
and oil rigs.'

One way the group hopes to
find . business is through new
designs, one of which it
announced in Athwm yester-
day. This is for a £13m multi-
purpose cargo ship, the SR 22,
which carries on - from the
successful SD 14 range built
by Austin and PidtersgiQ on
the Tyne

Mr Atkinson described the
22,000 deadweight tofeme ship
as “a winner.” It can carry
just over LOGO container
units and has a relatively
shallow draught and short

length. The company has .
likened it to a Rubik cube
because of Its chunky
appearance when stacked
with containers.

Over the past 15 years;
-the SD 14 has been one of the -
world’s most successful
cargo ships. “I believe the
SD22 will also have a major
appeal for our shipping
friends around the world,”
Mr Atkinson said.

- My John Parker, the
group’s deputy chief execu-
tive, said it hoped for orders *
for fee stop from Greek and
Third World . shipowners,
among others.

The group experts further
orders for its 42,000-tonne
efficiency bulk carrier intro-
duced last year. It badly
needs more orders to keep-'
meeting government targets.

On the 1982-83 loss limit of
£10m, Mr Philip Hares,
finance director, said: “We’re
going for it. bnt it won’t be
easy-” Several yards needed
.more orders especially near
the end of the year.

-One small order which the
group announced yesterday
was for a £3£m coastal sblp
for the Stephenson Clarke
shipping subsidiary of
Powell Dnffryn.

Talks about possible orders
are going nn in Brazil. Mexico
.and elsewhere.

Each year, said Mr Parker,
the group needs to i»s» orders
for abou t 45 stops to k«*ep up
its- financial perform a rtf'. j n .
fee last financial year, it won
69. But nn new larco ai'cr-
dtant orders have been
announced for. some months.

Atkinson: “difficult year”*

11

Fmancial Times Wednesday June 9 19S2

a*

!? *lai -
rr.aL^I r.

toV

,Jn ? 4SS

««! S,. .

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OTOR CARS

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HOOPER 4 CO. (COACHBDIISERS) ltd.

ESTABLISHED 1S2fi, ASSOClATS) WITH BOLLS-flOYCE SINCE 1901. .

WE'LL BACK YOU FOR ASCOT

Rw . Until Saturday J9rli June we will offer ail" Rolls-Royce and

gg] * Bentley, owners Summertime check to indude

. ' air conditioning systems. Also quotations for _

Wm? ELECTRIC SUNROOFS

In steel/ glass and Everflex finishes

KIMBERLEY ROAD, LONDON NW6 7SH.0 1-624 8833. TELEX: 295794 HOOPER G

WBBNggg. YA UXHAtV HOYA US 3 LT
Pi^lnHoiQn AntonnciG Saloon, 4,000

LEGAL NOTICES

IN THE MATTS! OF
R R JNVESTMBUTS limited
AND IN THE MATTER OF THE
COMPANIES ACT 1848

NOTICE IS HEREBY GIVEN Hurt the
eifdftor* of the above-named Com-
pany, which i» be ins voluntarily
wound up. ere required, on or before
the 26tfi day of August 1382 to send
In their fuH Christian and turnunn,
their addresses . and descriptions. •
ini perticutara of thBir debts or
cfsjtnit. end the names end addresses
of their Solicitors (if any}, to the
undersigned

BURNT KUMAR SING LA. F.C-A-
of Single end Co-
Chartered Accountants,

: of 423 Alexandra Avenue,

Harrow,

Middlesex HA2 BSE.
the liquidator of the arid Company,
end, if so required by “notice in wm-
•n from the tdd liquidator, ore,
pn-eonatiy or by their Solicitors, to
come in and prove their debts or
ekaima et soch rime end piece as
strati be specified in such notice, or
ia- - default . thereof . they win be ex-
cluded from die benefit of eny dis-
tribution made before such debts are
proved.

Dated this 28di day of May. 1SB2.

, S. K. SING LA, F.C.A.

Liquidator.

PERSONAL

IN LOVING
MEMORY

I Floral tribune fade. Your regard' for
a departed friend fives on If you
make a donation in their name to
Help the Aged's work— towards a
Day Centre far the lonely, medical
treatment or research for the . old,
or help for the housebound. Every
£ achieves a great deal for the old.
•Please let us know the name you
wishvta commemorate.

Send to;

The Hon. treasurer
The Rt, Hon. Lord May bray- King
Help die Aged

Room FTJNM, 32 Dover Street ' -
^ London WIA 2AP .

PUBLIC NOTICES

CITY OF EDINBURGH -
DISTRiCT COUNCIL

VARIABLE. RATE
REDEEMABLE STOCK 1983
For the. six months from
9th June 1982 to
9th December 1982 the
interest rate on the
above node will be
67812% per annum
BANK OF SCOTLAND .
55 OLD BROAD STREET.
LONDON EC2P 2HL

art galleries

«5SK jS^m< JflVffi* JS*

tram Harroox. Id unusual aort unudhil

l. QuUta, D ecoys, e tc. Wr iQ-ei Set*

CRANE KALMAN GALLERY. . 17 B Bromp-
^SVTRdrSWy OI^SIM 756B. Worts JW
• NlUiolion. Sutherland, Lawiv. Sf ear.

wSEHJtrtiw*. Cojwihoon. Ktt Wood.
- Daily TQ-6: Sat* 10-4.

' Until 31 Jofy. 1

THE PARKER GALLERY, 2. Alternate St,
PtaidlH* WirShlWtJonMOId Marta*.
M II Ftary wtd SBortl p a and Topcoraphlca 1
, Prints end Mnaw and stitox MOML

RICHARD . GREEN GALLERY, 4/ New
Rond Si W1. D 1 -499 5447. EX HI B I -
TH3N OF FRENCH PAINTINGS. OWv
10-6. Sau. 10-12.30-

M4RGOT HARRISON- Watercoloura »nd
small Qilx. THE BRAJJ SHAW ROOM. 17
Carlton House Terras#, SW1 . Until 17

June. Mon.-Fri, 10-5.

qujuchi. Id, Old Bond' St-. W1 . 01 -49^1
7408- 10th CENTURY F«NW ^W-
INGS until 11th June. Mon-Frl. 10-6.
~ Sax. 10-11. ■ ; - -

' WHITECHAPEL ART GAL L ERY, El. 4/7
n i ryj Tube AJdaaX* E. To 20 June
JaSiNIS 7 WJUNEtl? Sun.-Frl. 11-S.50

d. Sat. Free.

LEFEVRE GAUCRY. 30, Bruton St. Wt.

Sf'vn 1 T^ u Ji

WORKS -OF ART. Mon.-Fri. l«-5. 5ats.
10-1. '

AGNEW GALLERY. 43, Old Bond 5t.. W1.
B29 Tire. MASTER- PAINTINGS. 1470-
1820. Aba late Tvr nor Wa»ja ’^o
Until 30. July. Mon.-Fri. 9.30-530.
Thurt. until 7.

-tuuxwse & DARBY. 19. Cork ftWi-
*01*34 79M. CHRISTOPHBR STEIN.

New Faina ngx. • ■

JBOL iMMOYEH. Unttl 19 JuM-

i se’‘r!UiK e ?R. SWITS.&. 25

WraSO palqUna uiRH .V®* June.

CLASSIFIED

ADVERTISMENT

RATES

Sbigle
. Per column
Pne cm
£ ' £

BJQO '7JJB0
ft DO , 29.00
6.50 29.00

f.' . a . : t

Conimbfci"' I Industrial .

Property . - Im »n
Residential Property ,®.0

AppolntmantB -

'tssisrr?' -a. da
B ‘siisr ,?rS '' ,/ •»»

S care. . :W0'

Hotafo * Trawl . .

CbnOTCW,* Tandem 8^» "■»

IBook 'PubJ where — net iz .00

prendupi poaWons.jEwilaW*
(Mfoimum eto 30 edfomn oma)

" ‘ ^LbO per efoflle estumn on extra
; fa tuhher'ietail* write to:

* ClasrffiedAdYertifiemeit

•--■; ' Manage r ; .

; * ■ . Financial Times '/ .

‘SlfK CanjHm Street, Epff 4BY

CONTRACTS & TENDERS

INVITATION FOR PRE-QUALIFICATION

FIRST STAGE ISTANBUL
SEWERAGE PROJECT

Contractor* In the field of civil and sanitary engineering works, with
particular experience in the construction of sewerage systems, treatment
plants, see outfalls and the attendant electrical and mechanical works are
Invited to participate in a pre-qualification procedure, in order to be 1
included in the list of prospective contractors for the execution of the
First Sage Istanbul Sewerage Project (Yanikapl area).

THE PROJECT:

1. The General Directorate of Istanbul Water and Sewerage Administration
(ISKI) is responsible for die preparation and execution of a sewerage
and aawage disposal project in the Greeter Istanbul Municipality area,
which has been scheduled for execution during 1982-1387.

Z The project regarding Its major contracts has been or is being prepared
with the aseisiencs of The Engineering Consultants who will also
contribute to the pre-qualification of contractors.

3. Tha project comprises the construction of Oswego disposal facilities for
tfwr Yeniicapi drainage area, located in tha city of Istanbul' at tha

'European side of the Bosphorus betwobn the Golden Horn and the Sea
of Marmara.

4. The sewage disposal facilities comprise interceptors (about 27 km, of
which about 4 km aa tunnel), a pre-treatment plant (aerated grit
chambers) with Influent and effluent pumping stations (mex. about
12 mVseo.). fores main (2.4 km) and a submarine outfall main with
dlffusor into tha Sea of Marmsre '(length 2 km).

THE CONTRACT:

U The project works will be constructed under six separate contracts, viz:

a) the Allbeyfcfiy interceptor along tha Golden Hem, covering a con-
struction period of 36 months starting July 1883 (issue of enquiries

. Jan. 1983, submission of tenders March 1983);

b) the BekirkOy and Seraybumu interceptors and force main along the
See of Marmara, covering a construction period o< 32 months start-
ing November 1983 (issue of enquiries May 1983. submission of
tenders July 1963):

e) the Fatih interceptor tunnel end other possible tunnels, covering e
construction period of 24 months sterling April 1964 (Issue of
enquiries Oct. 1983. submission of tenders Dec. 1983};
d) the influent and effluent pumping station and pre-treetment plant at
Yenlkapi, covering e construction period of 34 months .starting June
. 1984 (issue of enquiries Dec. 1983, submission of tenders Fab. 1984):

• - a) the electrical and mechanical installations attendant to the pre-
treatment plane pumping stations and pumping mains, covering e
raanufecttmng, installation end commissioning period of 34 months
starting July 1983 (issue of enquiries Jan. 1983. submission of
tenders March 1983):

1) the submarine outfall mein at Ahiricapi. covering a construction
period of 30 months starting October 1983 (issue of enquiries March
1963. submission of tenders June 1963).

2. Contractors ere allowed to act In joint venture or joint operation with
other contractors for this project.

INVITATION:

The forwarding' of -participation forma for this pro-qualification can be asked
by mail - or by cable at the latest on June 21, 1982 at the following address:
Mail Address: - Cable Address:

ISKI. Istanbul Su ve Kansllzasyon I da ms i. far Sular
Genel MfldQrlDflO, Franslz Cikmazi, Istanbul

Beyoglu- Istanbul, Turkey Turkey

Completed pre-qualification forme ehsU be submitted in two copies by mail
or personal delivery to tha above address at the latest-on July 23. 1882-

PubKcEstablishmentof Electricity

Fincaill directorate-extern
contract section

EXTENSION OF THE CLOSING DATE OF TENDERS

No. 1461-1460-1459-1458-1457-1452

. Following our advertisement for the a/m tenders
which Is mentioned in the daily official Bulletin No.
4177 dated 15/5/1982. ■

Please be informed that the closing date for
providing offers is extended to become as follows:

Tender Subject The dosing The opening.

No. .date of the offers

5 fork lifts

7S pick up

6 digger derricks
hydraulically

10 sky lifts

Trailers for trans-
porting and laying
cable

15 wbee] drive capacity

The dosing The opening
.date of the offers
at 10 o’clock
7/7/1982 8/7/1982

1/8/1982 2/8/1982

4/7/1982 5/7/1982

27/7/1982 28/7/1982

27/6/1982 28/6/1982

11/7/1982 12/7/1982

Damascus 23/5/82

THE GENERAL DIRECTOR OF PEE
ENG.R. EDRISS

SUDAN RAILWAYS CORPORATION

STORES DEPARTMENT

NOTICE

Contract Nor 5350 SUPPLY OF ONE HEAVY-DUTY GRINDING
- . MACHINE

535V SUP PLY ON ONE SHAPING MACHINE

5352. SUPPLY OF ONE ULTRASONIC FLAW
- DETECTOR

5353 SUPPLY OF TWO ARC WELDING SETS

5354 SUPPLY OF TWO- DRILLING MACHINES
• 5355 SUPPLY OF TWO CENTRE LATHES

Sudan Railways Corporation Invites for the above tenders which
are financed by the World Bank.

Documents' can be obtained from the office of . Sudan Govern-
ment Purchasing Agent of 3-5 CLEVELAND ROW. ST. JAMES'S,
after payment of 2.00 per set for the first four contracts and
0.00 per set for. the last two contracts.

The: closing dates affixed for acceptance at ATBARA— SUDAN
arej-T- |5th. Jaly 1982 for contracts 5350 A 5351. -17th July 1982
for contracts 5352 & 5353, T8th July 1992 for contracts 5254 and
5255.

OFFICE OF CONTROLLER OP STORES

EDUCATIONAL

COMPANY NOTICES

EUROHMA

(Eurapeap Company for the financing of Railway Soiling Stock)

197B/IM5 zi% USJtaamm '

NotlW ha haraby ghren w Bondholders of the above loan that Euwfi ma
- ha a- acquired through purchase In the, market an amount of USS800.000
and that cuoh amoont will be creditsd against mandatory, payments due
on July L 1982.- • *

Furthermore Eurefima has ex*cte*d Its option to jredsam an addition*!
USS8Q0JMQ by purchase.

Aiqotrnt outstanding: US91&800/®*- _ _ . ...

Luxamboo
June 9, IS

-The Fiscal Agent
-KREDIETBANK SA
' LuxembourgaoiBa

RESIDENTIAL PROPERTY

HAMPTON & SONS are delighted to announce
THE CREATION OF THE NEW 10th -FLOOR AT

COMPANY NOTICES

m

OFFERING THREE SUPERB PENTHOUSES
AND AN UNRIVALLED BACHELOR DUPLEX

FURNISHED FIATS
AVAILABLE FOR RENTAL

Apartments indude the 3-bedroom Penthouse overlooking

Hyde Park with the optional benefit of adjoining self-
contained accommodation for use as staff or miner;
quarters.

Two 2-bedroom Penthouses, together with a unique single-
bedroom duplex featuring a spiral saircase, are also to

let.

These apartments are furnished in a modern style and
have COLOUR T.V., VIDEO AND STEREO SYSTEMS.
The Penthouses all have roof terraces and reception rooms
ideal for entertaining. Kitchens and bathrooms are
exceptional.

55 Park Lane is a purpose-built block of quality furnished
apartments; facilities include 24-HOUR PORTER AGE .
LIFTS, CENTRAL HEATING, CONSTANT HOT WATER
MAID SERVICE. TELEX, CAR PARKING, and in-house
MAINTENANCE.

Please telephone, telex or write to

6 ARLINGTON ST.. ST. JAMES'S. LONDON SW2A 1RB
Tel: 01-493 8222. Telex: 25341

SWITZERLAND]

AIGLE * VUXARS

FOR SALE: Exclusive
freehold property, direct
from the Owner Builders

FF5T3

Most dfigenfly designed and built to * UjBfcT

the highest standards. Swiss Government ™

financial and legal regulations My met for -

sales to non-Swiss nationals. TqBfc

Mortgages: up to 60% over 20 years at low

Interest rates.

Please contact Mrs Ltrisier or Mr Maricii direct at

tite Owner-Btrilders:

Imroobiliere deWJarsSA + Sodim-SA
P.O. Box 62, 1884 VUlars-sur-Ollon, Swit zerland.
■MMTd: 010 41 - 25/35 35 3ljHH|

Telex: 456213 GESE CH ■SISS

Modern Executive Honse

— On outskirts o;f Edinburgh —

18 Cockbum Crescent , Bale mo-
On a particularly attractive corner site with a
protected outlook south over fields. A delightful and
unusual detached bungalow villa architect extended,
to produce excellent family : accommodation and
privacy comprising, with carport, gas central heating
etc, a large sunken style lounge with study off, dining
room, three double bedrpoms with fitted wardrobes
and tibe master bedroom having a full shower room
off, fourth bedroom/playroom, general utility room,
pleasant working kitchen with play area, bathroom,
sauna room and excellent cupboard accommodation.

Offers over £39,000,

To view please telephone 031449 3595

SWITZERLAND

FOREIGNERS can bur il»rtrntfit» freehold on LAKE GENEVA, in Mnntrevx mar
Lauaannc. or all-rear-round resorts: St. Cerooe near Geneva. Villara. Verbler.
Les Dfoblcrets. Lenin, etc. FINANCING 50-70% AT LOW INTEREST RATES.
AIM quality properties In France: Apartments In EVIAN on the lake, approxi-
mately 3S minute* from Ganieva, and limirioas villa* VERY NEAR THE BORDER
OF GENEVA, built to your spedfleadDns. Advise proa preform).

WMte toe Dnelmr. do GUMK flan SA
Mon-Repos 24. 1005 Lausanne. Switzerland
TeU arn 22JS5.12 Tales: 25tB5 malls ch

ALICANTE, SPAIN

For Sale. FABULOUS. VILLA with 350
sq.m. Constructed In Mora Ira. 50 km.
from Allcams. 5«a view. 3 kmA tram
Seech. De luxe construction with dif-
ferent inside levels, tolly equipped, de
luxe kitchen, central water and heatlna.
4 Bedrooms. 3 Staton Rooms, 4 Bath-
rooms. garage, cellar and tea garden.
Price 17 mflflan pesetas, 20 million
fully tarnished. Write: Mr Psallno
Martin. Obispo Bactundls, 5-Aicorta
(Vizcaya) Spain. Tel. <«4> 4424854

AMERICAN

EXECUTIVES

seek luxury furnished Bats or
houses up to £350 per week.
Usual fees reqnired.
Phillips Kay and Lewis
01-839 2245

KINGS REACH, LONDON SE1

Superb 2-bad. balcony flat over-
looking Thames in prestige mod.
block on City borders adjacent
Blackfoera Bridge. Lifts. CH. CHW,
Porterage. Car Parking.

02,600 Furnished
FRANK HARRIS
01-836 8336

EDUCATIONAL

SCHILLER

Infi-rnurinnai ( niverMl\

BOND DRAWINGS

Notice of Redemption to the holder! of

LJUBLJANSKA BANKA

?J;% Guaranteed Notes 1983 • •

NOTICE IS HEREBY GIVEN that the following Notts - were drawn for
redempt i on op 15 Jaly 1982.

On the ISO July ISflZ. the notes designated above will become dut
The nU notes will be Paid agon presentation and surrender thereof wltti 411
coupons appareta bring thereto- mMuring alter the redemption -data, at the dPtfod
of

ts) Fiscal Agent. The British Bank erf the Middle East. P.0, am 242.

Ere Road, Abu Oh»W. United Arab Emlrana or. . “

ft) The Hongkong and Shanghai Bonking Coro oration. Securities Department,
99 UsMungue. London BC2P 2 LA. .

cocoon* appartaiiilna thereto maturing afnr the redempt i on date, at tire option
la the usual nuu»aer. , ^

On and after 15 Joly 1992 Interest shall MM to accrue on foe notes
hereto design* ted for payment.

UUBUANSKA BANICA
*Y THE BRITISH BANK OF THE MTPOLE^CT

Registered Office: LUXEMBOURG, 14, rue Aldriagsn Conunexcial Register: Section B n° 7.443

Statement by the Chairman in relation to tbe
Extraordinary Meeting of Shareholders
to be held 30th June, 1982

You wiU find enclosed, wifi this Statement a
Notice convening an Extraordinary Meeting of
Sbareiiclders convened for 10 am. on
30th June. 198S,

The first Resolution refers to Article 8 of the
-Articles of Incorporation of the F und which,
permits the Fund to restrict the beneficial

holdings of any one person to not more than 5% UUUjI Ml 1 1 UVI AJX? yjl ODCUU Vi OWVUIM, ujaArwi.»* arw
of the shares of the Fund. In vi&w of the fact that decide for other reasons, a Second Meeting,

the Fund permits its shares to be issued in which will not be subject to such quorum

beare r as well as in. registered form, it is not requirement, will be convened by an

practicable for the Fund to exercise these additional Notice. In such an event a vote on all

powers and your Board has been advised that items on tbe Agenda will be adjourned to sue*,

the continued existence of these powers may Second Meeting. _

resuit in listing of the shares of the Fund on In order to attend, the Meeting the holders of

further Exchanges being denied. Accordingly Bearer shares should deposit their shares on or

the first item on the Agenda will deal with the before 26th June, 1982 with the Banks listed m

amendment to our Article 8 so that right to the Notice convening the Meeting. Such

restrict holdings of any one person to not more deposits are required to be maintained and to

than 5% be removed. be effective both for the first and possible

The second Resolution seeks to remove the postponed meeting. . ...

present restriction contained in Article 15 of Holders of registered shares are invited to

the Articles of Incorporation which limits the submit proxies at the registered office of the

r of Directors who may serve at any one Fund on or before 26th June, 1982.

fiBeeii.ThismUembfettoMmemW W. T. J. GRIFFIN, Chairman

Shareholders axe hereby convened to an
EXTR&OKDIN2BT MEETING OF SHAREHOLDERS

sld on June 30th, 1982 at 10.00 hours at In order to attend the meeting, holders of

[istered office of the Fund, 14, rue bearer shares should deposit their shares on or

sen, Luxembourg, with the following before June 24th, 1982 with the banks listed

t; hereafter, such deposits to be maintained and

j , o ^ a n r to be effective, in the event the shareholders’

a«i^„ meeting of June 30th, 1082 fails tor lack of

Article 8 as “5% owner's". •Beaeacl'aiBexiaaaaTBiUa.Maan

lend Article 15 ofliie Articles of

operation by deleting the limitation of • Bence del Gotiazda, Lugano

.imber of members of the board to

embers. « Baaqna da llminchiae et do Baas. Paris

eholders are notified that Resolutions on J gg; SSSSSS £2

ive agenda may only be taken if at least • joim. Bemiboxg, GWer & Co., Hamburg

the shares outstanding are represented oBa*faBr^Aei»-c ^ «aiiJ c>m a-Fx«iikftmtgBa^
nesting. Should such quorum condition » a «

fulfilled or should the Board so decide + B!foaianbnk- WariMi«q AktianpwmDmriuift. FmMhrt

sr reasons, a second meeting which will • Goyaneaw Znxmom fiaiik a.g. ,

subject to such quorum requirement will •

ed by additional notices. In such event m M aw< », aei l te faga MaaMn l Anwwidam

eon all items of the aaenda Will be # Priralbankimi^obenhaviiS-a^ Copmliag«l

□ad to such secand meeting.

of the Advisory Board who serve in an ex
officio capacity to join the Board- and take a full
part in the conduct of fie affairs of the Fund.
Star ©holders are reminded that tha two

Resolutions referred to may only be proceeded

to be held on June 30th, 1882 at 10.00 hours at
the registered office oE the Fund, 14, rue
Aldringen, Luxembourg, with fie following
agenda :

1 to amend Article 8 of the Articles of
Incorporation of the Corporation by deleting
any restriction as to the holding by any
s hareholder of more than 5% of the shares of
the Corporation and as to the votmgof any
shares in excess of 8% of the voliag shares of
the Corporation held by any shareholder
and any reference to shareholders defined in
said Article 8 as “5% owner's".

2 to amend Article IS of toe Articles of
Incorporation by deleting the limitation of
the number of members of the board to
13 members.

Shar eholders are notified that Resolutions on
the above agenda may only be taken if at least
50% of fie shares outstanding are represented
at the meeting. Should such quorum condition
not be fulfilled or should the Board so decide
for other reasons, a second meeting which will
not be subject to such quorum requirement will
be called by additional notices. In such event
the vote on all items of the agenda will be
adjourned to such second meeting.

In accordance with Luxembourg law, in both
meetings, Resolutions will be subject to a
majority of 3 of the shares represented at the
meeting, provided, however, that at the second
meeting, shares not represented will (in a
number not exceeding *, of the total number of
the outstanding shares) be deemed to vote for
the resolutions proposed above, and provided
further fiat in such latter case the Resolutions
must be voted by the majority of the shares
represented at the meeting.

• Crime Nfldanale da Credit Affricofo, Paris IB*

• Credit todnstxial at Conniuncial, Paris Ba

• MttniD Lynch, Pierce, Fonnor & Snri* SecmjiiM
Uadenrnnr Utmifid.Londun EC1A7DA

• Credit lndnamal d'JUrace. etde Lominn.tonmbonxg

• DewwTliUrafllwtag.SJL.XmxBxiiboRxii

■ R. Hanriqnes Jr-, Copeah»oen •

• SatendlMatu»gn&Co.litdL, Landau ECSP2BY

• Bayerincha Vexoinsbnnk. Manehan

• V*rabm- und Waafoank AG., Hemharg

THE BOAHD OP DEECTCfflS

GOLD FIELDS GROUP

DECLARATION OF DIVIDENDS

The tallowing final dividsnds have been declared in South African currency, payable to mem bars registered
in tbs books of tha companies concamad at tbe elan of business on 25 June 1982:

•Dividend

No.

Amount
par share
cants

Doomfontein Gold Mining Company Limited
Driofonteln Consolidated Limited .....

Kloof Gold Mining Company Limited
Law non Gold Minmg Company Limited
Venters post Gold Mining Company Limited
Vlakfomcin Gold Mining Company Limited

Deslkraal Gold Mining Company Limited— in view of the present low gold price, and in order to
conserve this company’s cash resources, the directors have decided not to declare a dividend.

Dividend warrants will be posted on or ebout 3 August 1982.

Standard conditions reining to the payment of dividends are obtainable et tha share transfer offices
end the London office of the companies.

Requests for payment of the dividende In South African currency by members on the United Kingdom
registers, must ba received by the companies concamad on or before 25 June 1992 in accordance with
tha ebovamentfonsd conditions.

Tha registers of member a of tha above companies will ba closed from 26 June to 2 July 1962, inclusive.
London Office:

49 Moorgata.

London .EC2R BBQ. By order of tho boards.

United Kingdom Registrar

Hill Samuel Regietrera Limited. C. E. WENNER.

6 Green cost Piece.

London SW1P 1PL London Secretery 4

B June 1982

NOTICE TO HOLDERS OF
KUROFEAN DEPOSITARY RECEIPTS
(EDICs) (a

MURAT A MANUFACTURING CO., LTD.

.The «5th Ordinary General Mmnw
of ritareholdere of Murats MomrfxtiM-lnB
Go.. Ltd. will be held on Jihw 16, 1962.
AGENDA

1- Aptxwral of Financial Statements and
BropoMd appropriation of the year for
foe 45fo Fiscal Year (March 21. 1961
_ to March 20. 1962).

2. Approval of revision of the Articles of
Incorporation.

3. Approval of revision of remuneration
for Directors and Statutory Auditors of
the Company.

t Foil text of None* Is svallabl* et Citibank.
N_A_ London.)

Shareholders who wish to csterctse tholr
voting rig Ms most rftposft their cartirtcates
not later than June 15, 1982, at tha
odices of the Depositary. Citibank, NA.
336 Strand. London. WC2R 1HB. or the
Afient. Citibank (Luxembourg) 5.A.. 15
Avenue Marie Theme. Loxembounii to-
o ether with Instructions indicating the
way the shares be voted.

CITI BA NIC NA„ LONDON
Depositary

June 9, 1982.

General Meeting

I flam -Ai- l ! I.', I . ' J ri f ,T

VVteWaRffiailV)

SOCIETES REUNIES D’ENERGIA
DU BASSIN DE L’ESCAUT (EBES)

Sod£t6 Anonyme

RESULTS OF THE OFFER BY PUBLIC SUBSCRIPTION OF
2,467,500 NEW PARTS SOCIALS OF N.P.V.

The public offer for subscription of 2X87 ,500 new Parts Sociales of-
n.p.v. reserved as to 2,662^00 shares to the holders of the 13JI2J09-
old Parts Sociales and as to 25X100 shares to members of the Staff
of the issuing Company and/or the S.A- “Interescaut,” in accordance.,
with the decision of the shareholders Extraordinary General
Meeting of the 26th April 1982, closed on the 26th May 1982.

The 25,000 parts Sociales reserved for the staff of the above
mentioned two Companies have been fully subscribed.

OF the 2^62^00 Parts Sociales offered by right to the holders of
the old Parts Sociales, 2,424,939 have been subscribed, i.e. 91 %.

The preferential rights not exercised, i.e. 1,187.805 coupons No. 40,
which entitled subscription to the remaining 237,561 new Parts
Sociales will be offered for sale for account of the holders of the
said coupons No. 40:

— at the Stock Exchanges of Bruxelles and Antwerp on
Thursday 10th June 1982

—at the Luxembourg Stock Exchange on Friday 11th June 1982.

These rights will be represented by “Scrip” entitling subscription to
the 237,561 new Parts Sociales at the price of F.1,625 per share,
payable in full at the time of subscription, in the proportion of
ONE new Part Soriale for 5 subscription rights.

These new Parts Sociales will have the benefit of aff the fiscal
advantages provided by the Royal Decree No. 15 which encourages
the subscription or purchase of shares in Belgian Companies.

These advantages indude:

— Exemption, for individuals, of tax on dividends paid in respect
of the years 1983 to 1992

—Freedom from deceased estate and gift taxes for 10 years from
the date of subscription.

The '‘Scrip*’ supporting the supplementary subscriptions must be
lodged, by Thursday 17th June 1982 at the latest, at the counters
of any- of the undermentioned banks, after which date the Scrip
wiil be valueless:

tn Belgium:

— Societe Generale de Banque
— Banque Bruxelles Lambert
— Banque de Paris et des Pays-Bas Belgique
— Kredjetbank
—Banque Degroof
— Banque Beige pour ('Industrie
In Luxembourg:

— Banque Generale du Luxembourg
—Banque Internationale a Luxembourg

fn London:

—Banque Beige Limited

JUmauciai limes ■ v v eainssaay J fine y iy^

UK NEWS - PARLIAMENT and POLITICS

LABOUR

No return to UN over Falklands

BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT

THE PRIME MINISTER yes- "

terday rejected demands that Thate |, er told MPs that and the Palestinian people,

Britain should m *k® another th e Government supported she told MPs, and she wanted

attempt to settle the Falklands un Security Coondrs to see the territorial

conflict through the UN Security resolution requiring the terri- integrity of the Lebanon
Council. . torial integrity of Lebanon to restored.

She made dear that Argen- be respeeted. - We believe in self-

*r° ops . had ^ alternative M eouaiiv condemn the determination as a principle,

of withdrawing or being thrown we equally eo: naemn na« j important for the Falk-

off the islands by force. acbvUy and hosti- ™5°7or the piJStiiSn

“ We shall now have to take ht * has . ak . e . n pl “ e people We have never

back by force what the Argen- Israel-Lebanon to aecept that."

tines would not give up by ooraer. sue saia. ^ inutelier con-

adhering to the UN Security It is Important to condemn demned the “utterly brutal

Council resolutions,” she told (Jus kind of aggression and attack” on the Israeli

MPs as the Commons met for hostility wherever it occurs. Ambassador in London last

the first time since the Whitsun It Is equally important to up- week, and praised the police

recess. hold the right of self-determi- f or their h«nJHng of the

" The Government has made nation, which, if one demands Incident,

it clear publicly that if 4 the it for oneself, one must expect ** \y e wjji do everything to

Argentines tell us they are pre- that one applies it to others." stamp out tyranny and

pared to withdraw we shall en- There was an important terrorism wherever it occurs,"

able them to do so with safety. i,- W fe between the Falklands she said. '

dignity and despatch. So far we
have had no positive response.” ■

The PM said no reply had

been received so far to the there was not a strong enough Mr Foot' asked if she was
appeal by Major-General Jeremy Link between the ceasefire and really saying that the Govern-

and the Palestinian people,
she told MPs, and she wanted
to see the territorial
Integrity of the Lebanon
restored.

“ We believe in self-
determination as a principle.
It is important for the Falk-
lands and for the Palestinian
people. We have never
hesitated to aecept that"

Mrs Thatcher also con-
demned the “ utterly brutal
attack " on the Israeli
Ambassador in London last
week, and praised the police
for their handling of the
incidenL

“We will do everything to
stamp oat tyranny and
terrorism wherever it occurs,"
she said. '

was not tiie British Govern-
ment or the UN that -was stand-
ing .in tiie way— it was the
Argentine junta.

If they would not withdraw
or negotiate then they would
have to withdraw, through
force. - • ■

She told Mr Sydney Bi dwell
(Labour. Southall) that if the

Commons Sketch

Reagan’s
technique
dazzles both
Houses

Rail guards oppose union
deal on flexible rostering

BY PHILIP BASSETT,- LABOUR CORMSPONDBOT \

TRAIN GUARDS’ represent- — which they feel will strong- Jecb at tte ^artJcoBtoatoe--
jtzves have voted overwhelm- then" left-wing opposition on the including fiexmlb rostering,
ingly against the decision of NUR executive to flexible ros- and one-uran operation. of trams
their union, the National Union tering, and will be used by the —in a letter senLto the con-

3“* d $• PRESIDENT REAGAN earne to ^d^lkon to bade ference. Be argued tiiat to

Argentines could have with- Westminster . to urmrove his . "y™ 01 . H . matte re iminn

Argentines could have with-
drawn by now. Even -today they
had only to contact the British
commander in the field and
withdrawal could be agreed
before the battle for Port
Stanley.

2S*STi“^SSri55 SgSttzrzsz

ol more fladble rostering.

opposition to the system. were matte rs of union policy

The resolution, approved by and therefore should not be dis-
229 votes to 29 at the guards' cussed.

film actor of popular repute. while the decision of the conference, called on the NUR Mr WeigheU is also expected

witiidrawal could be -agreed bat an international states- sectional NUR guards and executive to renegotiate the to be criticised at today’s meet-

before the battle for Port man dedicated to peace and shunters conference' was taken dea i mggd delegates to the ing of the NUR executive, where

t 5£? : i. „„ freedom. before the agreement between muon’s annual conference later he is likely to be taken to task

Bntein, she argued, was right What he succeeded in doing was British Rail and the NUR on a this month in Plymouth to for apparently formulating

cLJ et £ r Si -cwJf dazding his audience w4th the special flexible rostering pay- appea j against the executive’s nnfon policy on the spot in his

U5e *>*«* Presidential ment to guards of 50p per shift. remarks suggesting the NUR

.. e trouaiewas tnattne r esoiu - support system and demon- it still indicates the consider- NUR officials feel that would make a pay deal with BR

tamp oat tyranny and Security Council last Friday,
errorism wherever it occurs," The trouble was that the resolu-
he said. ' tion contained no unequivocal

link between a ceasefire and a
— — — — — withdrawal. Such a link was
absolutely vital for it to be
Mr Foot ' asked if she was acceptable to Britain,
ally saying that the Govern- • Dame Judith Halt, chairman

Moore, the British commander, an Argentine withdrawal. ment intended to take no of the Labour Party, yesterday H<msp T ._

aakin g the Argentine com- Bui Mrs Thatcher, who was further steps at the UN and had called on the Government to u-p 1 !,-. and BR estimate that well wer policy, they agree that the first with BR Engineering Ltd yes-

uiander. General Marto Menen- answering Prime Mincer’s no further interest in trying to investigate reports that Argen- SJ* 80 per cent of aU guards’ signs of eventual policy changes terday, m which the postpone-

dez, to surrender Port Stanley questions -and making a state- achieve a ceasefire through tina is ready to agree to with- with theOueen woke depots have t0 °^^ e . n emerge j °* e *7°

. eirt on the Versailles summit diplomacy. -draw its troops in two weeks— . ’*5™ new 7-8-hour shifts. Significantly, Mr Sid Weigh ell, railway workshops and of the

Western leaders, told him If that was so. he said, then Britain’s main condition for a SSt Mie BR officials are concerned at NUR general secretary, tried to rundown of a third was form-
at Britain bad been trying to Mrs Thatcher was going back ceasefire. - . dSmilmneSr tefed the the guards’ conference decision halt the discussion of some sub- ally confirmed,

hieve a negotiated settlement on undertaking which Britain Dame Judith said the U.S. S Wnvii * nnHprrr tntn

_ mu. lUinn TTnU-atl ' Ornate n °y aI ' ja,Ier y UnU

use of the latest presidential meat to guards of 50p per shift. ■ decision. . .. remarks suggesting the NUR

support system and demon- it still indicates the consider- '■ officials feel that would make a pay deal with BR

strating that he retains the able feeling against the propo- although the issue will be raised separate from Aslef.

same homely outlook wfcidi sal, particularly among activists. at pjyjnduth, they are confident The executive is now unlikely

took him from B movies, in " The conference decision also that the • union’s policy on to set any date for action over

■vrtuch tbe world is sharply goes against the pattern of the rostering will be upheld. While pay until negotiations are held'

divided into good guys and acceptance of flexible rostering they stress that the sectional with BR next Wednesday. How-

bad buys, to the Whate by guards depots. The union conference cannot formulate ever, it will consider a meeting

House. ond RR ocHninti* that well over nniimr thw conu> that the first with BR Rneineerine LM vk.

and avoid further casualties. ment on the Versailles summit diplomacy.

-draw its troops in two weeks — -

Mrs Thatcher emphasised: of Western leaders, told him If that was so. he said, then Britain’s main condition for a v rat wwh according to one
‘the United States is standing that Britain bad been trying to Mrs Thatcher was going back ceasefire. ' . Arinmne neer turned tbe

behind Britain in the action we achieve a negotiated settlement on undertakings which Britain
are raking in the Falklands, and for eight weeks. The only thing had previously given to the
is giving us very substantial standing in the way was tbe Security Council,
practical help— as we would Argentine refusal to withdraw In common with moth of the

Dame Judith said the U.S.
Ambassador to the United

London’s “best Turkish bath.’

expect from a staunch ally.'

Mr Michael Foot, the Labour things won by invasion.

Argentine refusal to withdraw In common with moth of the had said the Argentine offer
without retaining some of the other countries at the Versailles was made during the UN

summit.

believed that Security Council debate on a

leader, repeatedly called on Mrs “That is totally and utterly Britain should go back to the ceasefire, vetoed by Britain on

Thatcher to ■ lay

British resolution before the emphatically.

Security Council in an effort to She reminded Mr Foot that support far It drawal. sa vi n actiuv Ivajtevod t rai n"

prevent further bloodshed. Britain bad tried for a long Firmly, Mrs Thatdher told Dame Judith delivered to afteroLL

He thought it “most regret- time to achieve a settlement him that he had missed the Mr Francis Pym, Foreign Thptruth MPs discovered

able" that Britain had vetoed through Mr Alexander Haig, point. If the Argentines agreed Secretary, a petition signed by afterwards was that Mr

the Security Council resolution the U.S. Secretary of State, and to withdraw then there could 26,500 people calling for a R eaea n was reading from a

last Friday on the grounds that through tbe Security Council, be peace very very quickly. It ceasefire. nariienlnrlv running form of

further insupportable,” she declared Security Council with another the grounds that it set ne deed-

resoJution and try to win fuH ' line for an Argentine with-

drawal.

Dame Judith delivered to

notes, or give any sign of
reading a speech, and at the
end MPs were astonished by
the apparent powers of reten-
tion of the septuagenarian
President Perhaps, they were
saying, acting was good train-
ing for politics after alL j

Telecom engineers
accept 8% package

BY DAVID GOODHART, LABOUR STAFF

Foot criticises Versailles s umm it ‘platitudes’

BY JOHN HUNT,

THE CONTINUED need to national leaders on the need to disparities in exchange rates from . Mr David Steel, the

afterwards, was xnat mr p 0ST OFFICE Engineer- to differential pay rises for

f j.™ J ing Union has accepted a pay presently employed POEU
package with British Telecom members. He also sard that
which gives an 8 per cent rise BTs 2,200 labourers were the
all-round but includes a 5.25 best paid unskflled manual
ins script onto to two lecterns, cent ^ for new workers in the country.

recruited into the lower The pay deal of 6.75 per cent
bullet-proof screens, on either f __ h _ i _ al anri manual grades. <m basic and a minimum

side of him.

Large and clear

technical and manual grades. on basrc and a minimum
A large majority of the 700 guaranteed productivity pay-
delegates at tiie POEU’s annual ment of 1.25 per cent from
conference 4n Blackpool January 1, wSl give the top rate

reduce interest rates, inflation tackle unemployment But this were caused by fundamental Liberal leader, who pointed out T ^ audience the screens accepted the deal, which gives a engineering structure £9,871

and budget deficits was heavily had to depend on soundly based . differences in economic policies, that since the previous jJjvLi tTansoarenr and the P 3 ^ nse of 8 per cent from aod tne top rate technical

emphasised by Mrs Thatcher growth and in order to achieve ^ I t raised bv «con°niic summit unemploy- S it July 1. for the union’s 120,000 °®cer £9,217 per annum.

— r — J *- **■-* =-«“*«— *-♦ — - 5amc Ini 07 * -> — ’ — words ^ 11 members now enmloyed by BT. Technaoal one grade wzH get

emphasised by Mrs Thatcher growth and in order to achieve samc was ^5^ b y economic summit unemploy-

yesterday when she reported to that inflation, interest rates and a Tory back bencher and Mrs ra ent ti»e developed countries
the Commons on the economic budget deficits had to be Thatcher said the U S leader^ had 8°°* “P steeply.

nTS - the mentbers now employed by BT. TJchmcal one grade wrH get
therefore looked as if the v T>ac a c3ce renom- . £148 per week and 2A top

to en> mended by Reunion’s national grade £134 per week. But new
?* *°s fJSL?J25? S ^ executive, and Mr Bryan recruits to the technician 2B-

hSsLehot f **'%■*? *“«<*! r^SLS

th- word* were writ described it as the best yet in compared

ever, me woras were wni with £113 for nnwem em-

outcome

summit.

Versailles brought lower.

ship at the summit had been

Mr Roy Jenkins (SDPffl- amrfous to reduce the American

He wanted to know if there
had been any discussion on the

Her statement was greeted head), who was formerly a defidPbv cottinff Inendint It uao oeen any aiscussum on tne

with great scepticism by Mr Labour Chancellor of the Ex- was LSLl ^amroach S0CI ^ eff !P?. O tf!! S l l ? e S!L 0y '

Michael Foot, the Labour chequer, asked whether she t^ririitSie PP “« nt - ^ ^ere had been a

leader, who saw it as an ex- believed that the Americans “ determination to mtroduce

change of platitudes similar to would now take greater prac- She said President Reagan urgent measures to reduce it.

those which had come from pre- tical steps to intervene to give v ^ s anxious to reduce expend)- The Prime Minister said
vious s umm its. greater stability to the dollar fuf® not Just for one year but jj a( j been an awareness

tbe public sector.

with £113 for present em-

“ 1 18111 determination to mtroduce “rge ana «ear- . a nilin ber of delegates ployees. New labourers Will

She said President Reagan urgent measures to reduce it Afterwards MPswere intrigued aM^at fte iw^cuts get £93, compared with £109

s anxious to reduce exnendi- on.- and clearly envious. Indeed, ^>re^ an^ at me pay ous . ^

He wanted to know what exchange rate,
specific steps Britain and the Mrs Thatcher told him it had tnat would have a employn

other countries had agreed to been agreed that the only real Jv ea , ^ 1 was ? ot ^ ust ever, s

take in order to bring down the way to achieve greater currency the U.5. inflation rate that was nat ions
high levels of unemployment. stability was to follow similiar C0 “jps down but the defiat as by bri

Mrs Thatcher said there had national policies for bringing weU - rates,

been solidarity amongst the down inflation. Fundamental There was a sceptical reaction deficits.

ture not just for one year but ^jjere had been an awareness
a ^^sion of years “so of ^ need t0 bring down un-

that the market would have a employment. Once again, how-
rlear signal that it was not just €ver> she stressed 'tta t the

ana aeany envious, jluukku, -- — . — t„ «v>nnri mnnrl of

immpdiatelv after the Presi- f° r some grades, including “ e sec . ona , round or

dent sat down there was apprentices, recruited after Rational executive elections, the

ssjsassim's “j >■ n«u

method of delivery as in the labourers, now among the best when Mr Lloyd, a Militant
Snteots is the s^ch. the coun ??’. ^ face ,*5?

onmilCn th* hIimc nations had agreed to do this Reasan was the first UB. the highest cut of 14 per cent occupational elections. The left-
coming down but the defiat as by brilJging down interest “LSKf hath in nreserrt pav rates. right balance is now 15 -8 to tbe

inflation

nterest President to address both in nreserrt pav rates. right

budget Houses of Parliament and he Mr Doug Sanderson, of the right.

Tory unionists
urge industrial
relations reform

B John Lloyd, Labour Editor

Tax advice for companies
buying own shares

BY IVOR OWEN

More members
urged for
Ulster Assembly

NORTHERN Ireland’s Boundary
Commission has suggested

was dearly very aware of both w «t Middlesex branch, said: Conference narrowly accepted
the honour, and. the historic “ T ? accept tins deal would be the executive-backed pay deal
nature of the occasion. The 3 violation -of basic trade union for the POEU’s 8,000 members
significance of the fact that principles." in the post office. It is broadly

the venue had to be down- Mr Derek Bourn, for the the same as the 8 per cent BT
graded, following protests by NEC. defended the deal on the deal, with similar pay cuts for
Labour MPs, from West- grounds that it was preferable new recruits.

CONSERVATIVE trade '^u^^tob^proSdS'bytiie B^be^r/aw^JfulfSls S^erelhieufsit S^Ulster

~ Te’bbi. SS 4*. te “r, 0 S C va'n° Assembly prised by Mr

ment Secretary, for a commit- tage of the tax relief provided The Minister stressed that the ^rthei^Ireland. ° f * or

ment to introduce ^ a Trade in the Finance BUI for com- board would not be able to give The commission announced
Union reform BUI, either m the panies buying their own shares, a definitive answer in regard to vesterdav that it was recom-
next session o£ parliament or Mr Nicholas Rtffiey, Financial scheme until the Bill was mending an 85-member
1 Conserva ' Secretary to the Treasury, last on Statute Book. But to assemfi^ instead of the 78oeat

minster Hall to the Royal
Gallery was lost in the
splendour of the occasion.

The Royal Gallery may be one
down on Westminster Hall in
the scale of honours the Com- ;
mons can bestow, but in terms j
of ostentation there is nothing

BA cabin staff hit flights

BY BRIAN GROOM, LABOUR STAFF

tive manifesto. night told the Commons "stand- a ^sist companies or their house it proposed two months

Mr Tim Renton, Conservative jng committee considering the advisers, the board would be ago.

MP for mid-Sussex and presi- Bill that one of the main aims pr ? pared t0 express 3n informal The change comes after a

to beat it in the Palace of BRITISH AIRWAYS yesterday one.

canc ? Ued fj. af its 23 inter- BA denies that this endangers

tones in all their bloody
splendour.

Managers

recruiting 150 more staff and
meeting cost an extra £lm a year in

dent of the Conservative Trade W0U ld be to provide a practical ®P“ ton before ** BiU becomes number of written complaints Mr ^d Mrs Reagan got aU the leader s of the British Airiine hotel costs and allowances*

Unionists group, said last night interpretation of the require- Ja *; , and submissions which followed ttq Stewards and Stewardesses . MI - .

that he wnuiri spp Mr Tehhit on man«- »« nii.iifrr Mr Ridley suggested that the rmnmisidnn'e nripin.-it nrn. pomp and ceremony the U.S. , . v. - 1 ■ j The airline offered a cot

unionists group, saia last nignt interpretation of the require- and sunmissions wtuen foilowea

that he would see Mr Tebbit on m ent that to qualify for relief ^dlev suggested that the commission’s original pro-
tomorrow to seek a commit- the transaction must be shown schemes designed to buy out a posals.

ment to a Bill introducing 10 be designed to benefit a dlssld ent shareholder after a Northern Ireland now has 12

secret ballots on strikes and trade carried on by the com- board-room dispute were likely Westminster parliamentary cou-

eiection of executives.

Earlier Mr Renton called in

pany or a subsidiary.

This safeguard is embodied

to satisfy the conditions laid stituencies. At the next general
down in the clause. election, the number is to be

. Sir William Clark (Con Croy- increased to 17 and the
don South), chairman of the boundary commission now
Tory back bench finance com- suggests that any new assembly
mittee. called for the clause to should draw five members from

the Commons for a discussion s n c i ause 4* of the Bill to j &ir wuuam Clark (Con croy-

docuraent on reform of union eliminate any possibility oi the Tore ^k heSh ciSf

role books. He said extreme relief leading to a bonanza for ^

decisions” were taken by shareholders instead of r
unions without the use of jog fiscal obstacles to
ballots. ... _ ... actions necessary to benefit the

Mr David Haddington, Under- trading life of the nation.
Secretary for employment, told _. .. ■ . # .

bv e h a «,v,„M n « „r mmee. cauea tor trie clause to

J *1 shareholders instead of remov- j ..

of inn ♦„ oe extenaea to apply to any un-

S2- — « ( > »uo.- d cm-

?r- In/linn UfA nt )l, a P" 11 -'

Secret a iy for employment, told Mr . undertook to

the House that changes in trade . announced that the examine that aspect further at

union rules would be enforced c ^ earance procedure would be the Report Stage of the Bill,
bv the Government if volun- ^ 1 J I

iMsm* not brougi,t r owler deplores stoppage

“ We are giving them the ^ _ m

voluntarily.” he said. “Wc by health service workers

have no doubt at all of the need

n- each of the 1” constituencies. ™ rv r ™“ , ' . Ml ,

n- Debate on the Committee Thatcher was then 1

Stage of Mr Prior’s devolution care of Nancy Reagan wtule

to plan continued in Parliament H 1 * £ reat Chamberlain

at yesterday. Seven-and-a-half 1?°^ Ifresldent Reagan into

hours of debate have already ™ Robing Room.

been spent on the Committee j . - ,

s Stage and 137 amendments have DGniUSCd tOUTISt
still to be considered. _ _

pomp and ceremony the U.S. ^ oiewarue*^ The airline offered a compro-

television audience could Association last night m a bid ijnise w hich excluded Los
have wished for A detachment to mm. further disruption Angeles and San Francisco from
of the Queen s Bodyguard of 10 “5^-, _ the s hift svstpm hift

the Yeoman of the Guard were tiiey are association rejected* it demand

lined up for the President’s suffering from jet lag stress ^tha? WlSlS^&SSSt
arrival and he was met by b^ause of a new shift system 'xlmnt^ tMUm and Barbados be
the Lord Great Chamberlain, introduced on transatlantic *™ pi ® weil ‘
the Marquis of Cholmondely. nights in February as part of Yesterday’s disruption grew
who in turn introduced him BA’s survival plan. It involves after BA suspended 13 .cabin
to the Prime Minister. Mrs t w ° return Atlantic trips in staff who refused to work on a
Thatcher was then left to take one flight pattern, instead of flight to Barbados.

Bank staff
may block
Saturday
opening

By Brian Groom, Labour Staff .
BARCLAYS BANK’S largest
anion, representing 48,000 of ’
Its 70,000 UK staff, is draw-
ing up contingency plans te
fight any relntrodnction of
Saturd ay opening this

ayft innii-

Hr Eddie Gale, general
-secretary of the Barclays
Group Staff Union, said these
coaid be employed If mem-
bers decide in a ballot, likely
to be held shortly, that they
.want to “ stand in the way of
the proposal *•

Any decision on measures ;
would rest with the general
committee, which will meet at
the end of Jane or In July.
Mr Gale wonld not disclose
the options under
consideration.

One possibility could he to
"black”. work on Fridays and

Mondays in protest against
Saturday opening: The bank
believes staff who did this
wonld be in breach of con-
tract.

Barclays' meets -Its. , unions
today and tomorrow to
explain - the commercial
reasons for its plan.

Barclays plans to. open 409
branches, each staffed by five
to 10 volunteers. BGSU’s
rival, the TUC-affiUated Bank-
ing. Insurance and Finance
Union (Bffo) is urging Its
15,900 Barclays members not
to volunteer. '

• Phoenix Insurance Com- ■
pany has averted a threat of
industrial action with a pay
and conditions package which
raises salaries by 9 per cent,
effective from the start of this
month.

The 3,400 members rtf Bifu
among the 4,000 staff had
voted by a small majority for •
a work-to-rule over five issues
not related to pay talks.

These were: the terms of
part-timers; redundancy pay-
ments: an. alleged increased
stringency in awarding merit-
based increments; “a dispute
over whether a house pur-
chase scheme should be
reviewed jointly; and im-
provements in the staff life
assurance scheme.

Miners join picketing nurses

chance to reform themselves ky flfrolfll among MPs that Mr Prior would

voluntarily” he said. “Wc DV Hctllul SClVlCC WOlKCrS have to curtail the debate if he

have no doubt at all of the need ^ wanted to press ahead with his

for greater union democracy — THE GOVERNMENT yesterday Jill Knight (Con. Edgbaston), p1a ° y r elections for an

and we do not underestimate continued to resist demands for when she said that the long- assenH, 0' “ autumn.

There was a growing feeling President, still wearing his I YORKSHIRE was up in arms outrage

0rd Ti7J 0UI1 f “J** was then yesterday and it made a daunt- beneath the surface' i£e 3 ii? Sd tiS

conducted into the gallery. in g sight. like some bizarre fortunate reporter who asked wi t$d iff! £

where he was greeted by a scene from Grimms’ Fairy Tales, whether the hospital was^SS more than TO

fanfare of mimpets and in- burly muscle-bound miners all ning on a skeleton staff was Ste had tak^t^ ^cSn
™duccd to the Lord Chancel- over the county flocked in their turned on by an elderly matron: without a niefert
lor and the Speyer of the thousands to the distressed “Well all be a skeletonstaff , , “ sigh “

Lommons. By the timehe was workers in the National Health soon if we accept this waS ■ Se T"*l- 0, * l ? r unions, inchxd-

seaied on the dais between Service in a flourish of righteous offer, " she said. ,pg Aslef tram drivers, joined

the two bewigged and panta- indignation, and socialist . • the picket line, in Leeds. But

the need for more use of secret increased pay offers to nurses terra effects of the battle against

ballots ” and other health workers- inflation would be lost if those TpLl^Jf #1 ATI iris

He told a Labour questioner, Mr Norman Fowler, the Social groups now on strike were 1CUU11 UCUlCo

who said that unions should be services Secretary, condemned granted their requests. onmniilciAn

left in control of their own rule yesterday's 24-hour stoppage by Mr Fowler said be would COUipUlSlOD

SSKLLi ?™ 0t tHS I ?n h€alth service workers, which, meet leaders of the Royal THE GOVERNMENTS plans

MPs would agree that all union he S3jd M bound t0 have an College of Nursing today and -

We’ll all be a skeleton staff

ion if we accept this wage unions, fnefaid*

Bfer, " she said. I? 8 tram dnvers, joined

, . to picket line in Leeds. But

“ !?_ Yorkshire, the euphoria of

nf^ e tn ^nprfprt that he said> was bound t0 have an College of Nursing today and for a new youth training scheme of a tourist who had wan- ™ e nn pe i ° s f po

Ln adverse effect on patients. “We riie nurses’ Whitley Council do not involve an element of dered on to .the set for an ^’°RP n ^,°? s ?° 1iie J hl ^

rtn stron gly deplore the action “embers tomorrow to continue compulsion, Mr Norman Tebbit. MGM extravaganza. ♦K Stri ^ e by WI ^ 1

members— quite clearly they do being he told MPs. taUcs 011 a permanent pay the Employment Secretary, said The gallery was packed with Government s h and.

looned figures of the Speaker chivalry. „ ™_ ^nuvoca! mood at in Yorkshire, the euphoria of

and the Lord Chancellor, he - ^ Pontefract was echoed at the smaller towns wasmarfedlv

had the silghtly bemused air ^ Jje s^n wbetiier Wakefield where about 1,000 less apparent

of a tourist who had wan- £ c of tte regitm>s ; A bm^Trow

£5tSLs,vfli BaSSSS i-awa k&=ms.-

TT | L- iMdtSmeSa ^din^o ?Slh^G “ br0Sd ^ ^Qu^onVime SltS^uld

Healey attacks ^ 1 . *oZ.\ e n ^. a’Sf £T53?SS

He defended the offer of 6.4 ar 25 8 2““ L

yesterday.

promised

managers

for other workers. They would ,■ J Services Secretary. Mr Tebbit told the Commons
lead to £320m extra spending on broad * r at Question Time that he would

staff in EnelandaloS he said oppos,t,on tp Goverament's be having further talks with the
S *’ e . S *l pa >* Proposals m the NHS than chairman of the Manpower Ser-

The Minister agreed with Mrs ever before.” - —

MGM extravaganza. one-day strike by NHS staff will j

he gallery vras packed with Government’s hand. MUSCie-bOUna pit

MPs and peers, sweating pro- **■* *e workers take to the

S^S d The a, oni?S i ” R 8 SBfl.-yStt?iS?S streets in a flourish
LSSKSV&SiTS Of socialist chivalry.

white House, would have ■ lvo Uawnay reports

vices Commission,

been despatched to the base-
ment long ago.

Yesterday, as the sun rose from Yorkshire
over the straddling red brick irom * orKSflire.

Unease over broadcast questions SSHS

^ characteristically well-p

2id LrnSouwSSJdav broadcasting of Question iBur only 51 per cent thought seriously damaged the standing L n b]ue Other

nr T*™* “a* 1 * tile House of Com- the broadcasting of parliament of the Houseas a whole"”^' however, were more

mons sound like “ a second-rate gave a “ fair ” impression of the Mr iSSony Nelson tC and wore crumpled ligh

STSSe SftSofS ConSmns. Most of Chi*J£y J Sb SSLA 5'555-

Sir Geoffrey Howe was in his mining towns, it looked as if “ ■ — —

usual Budget grey suit. whUe, the miners had simply extended _ „

Mr Michael Foot, seated in their week-l<mg Whitsun holiday worxers marched to

A bitter row over “scab”

1 ■, , . wwkers has worsened tiie strike

M use le- bound pit boft the city’s main hospitals.

wro-lrorc fair* +Vi« ff 0 ® 1 Nupe and the Confedera-

workers take to the tion of Health Service Em-

Streets in a flourish ploy eea_ are refusing any TCfeirn

r - !• .. . to work until tS>e mahagentent

Oi. Socialist chivalry. . hys Off aR but emergency staff

Ivo Dawnay reports ^Mr Enc Hill, house governor
from Yorkshire. SR S

-■ lug a notably more severe effect

than that of 1979. One hundred
NHS workers marched to a of the hospital’s 750 beds are
rally in the shady cathedral now empty, the piles of dirty

said there was “no doubt that
management in Britain is
infinitely inferior” to com-
petitors such as- the Japanese.

He also -painted a gloomy
picture of the chances of an
economic recovery in Britain.

mitigated disaster," some MPs the critics said too much “ Although somewhat better
have told a Commons Com- e mpha sis was put on Question now, the audio transmission still
nrittee. Time. sounds like a second-rate beer

The criticisms reflect what Ray Fletcher (Lab hall sometimes.”

mittee. Time.

The criticisms reflect what _,^ r Fletcher (Lab

the first report from the Select Hkestou) summed up the feel-

Co mmi ttee on Sound R road-

ilk est on) summed up the feel- The BBC said yesterday it was
ing when he told the committee: happy with the general outline

the- front row, looked un- into a gala. ,rouy in roe shady cathedral “ ow empt y, tie piles of dirty

characteristically well-pressed The management at Ledston f*l uare -' The column snaked l^em axe becoming mountains

in blue serge. Other MPs, laick Pit, cm the road to Castle- through grimy shopping streets, *“«• mo ®t critical, tbe absence

however, were more daring ford greeted the shutdown with **. hoarse cnes of “ Maggie out ” operating and sterilisation
and wore crumpled light sum- dour resignation. “ Oh, they’re ™ ,n gled with a hasty reworking has brought chaos to oper-
mer suits. In between them, out all right," the manager con- ,, a roroent advertising slogan a “ n 8 schedules.

House of Commons clerics firmed. “But T doubt they’ll be w 11 more care of you. Outside the infirmary pickets

dressed for the occasion in so pleased when they see the per ! ce “ t ' 12 per 06111 ” — some acknowledge that the patients

morning suits, ushered people Nqpe refuse men coming round fT"? sopra n°. are taking the brunt, but they

to their feet and on entering to empty their dustbins— some11 speakers who tried to insist repeatedlyffliat - the

the vast room people almost wonder why they can’t do their Plame entirely aV the responsibility lie- with tbe

fra Ka eclra/1 ohH 1'illff fiM* fhatnaaltrM 11 QOOl Oi tllG CUlTCTlt ^076nUD6Dt' GOTfiTPHimt.

expected to be asked whether striking for themselves. 1
they_ were a friend ..of the No snch uioom hsn,

He sa id inflaition was j^t rosting calls the “unease" of l? uestiop ^ « ***& any- of the report. It welcomed a ™re a friend .. of the

^ tikely lo rise as fall, oil MPsTt hearing themselves dur- *^8 other than pdrty knock- recommendation that absolute ° T ** Pnme

prices could °o nn and that ins the daily questioning of abou t stuff performed by privilege should be conferred on ( T®nisteris.
tiie recent^ Versailles economic Ministere at .ibe despatch Lx. J®**™- 1 not judge fte broadcasters in respect of the ^

“.f...... , . . relative merits of Mrs Tha idler live broadcasting of defamatory be both - Mr Reagans

It ,JK>re^than three-qnarters of and_ Mr Foot by the quality of words spoken in either House ??*«* showed how dose his

22 *■? a the No such gloom hangs over ^ taken out

or Oie Prime the Pontefract General ^ sendee." an indig-

TlCn isteris . Infirmary, only a few miles also' failed in rtfo^ii* Party had Cohse worker said. “ We

ie answer would have had to down ^ road> A phal]ara: of The n U ^S!, paS L mpst have justice.”

be both- Mr Reagans white-starched shock troops workers* solidarity ^ other Jt is this, keen YorStihire

speech showed how dose his basked in the sun’ outside m hen too. 5frSSL???i ' iusti ^ e and fefr pSay

ideology IS to Mrs Thatch eris entrance with hanno^e ” enr Y Dalev. . an that the Government w

“ muffed

crery opportunity it could have MPs who answered a special fcdr £mr good

. , . questionnaire wer e generaBy they sound on the air."

There is no doubt m my satisfied with the broadcasting Mrs Jill Knight (C

and another which said that
broadcasters should be given

-It is ibis, keen Yorkshire
sense of justice and frir play

ideology istoMra Thatdieris entrance decked with banners exeentive ^ Government has mwet:

Pe a Thames pleasure boat. SKSnJTSl "f ft Vm *ET*

riew that the Achihes heel of of pariiameut according to thi Edgtoton) said: broad- in thlSe of

SLr- he^d m 15 maMgfr r W rt - Question Time was an cont^ra?uT^atenSl tooVd-

ment, ue saia. which was published yesterday, unmitigated disaster and rest live.

Knight (C immunity from proceedings for world in very black and white B ut. dark rumours of ^cab a sler^rebukp re ^°nt'h£ eliv 1 red ^ .wants ,. uncom^i<m^

terms.

disaster and cast live.

■ • rumours or scab a stem rebuke to other TinW sur-

dencal staff and management which- had failed ?? EfE ^

i?l* rnAJmon ^ lots lnrt:ed amid the good- regional TUC*v °«n w te. - reduced pnrtestar

Elinor Goodman humoured banter, The scene of sympathy ac555f A heStii uJZn ^

Financial Times

’~* a *

’ «S ti f s i - - : • i* :Cr| *-# «

- ® 5 *■ : ■ r "'- - ' .♦ U'/ ,1( •!#*■:-•

?M'' ■■■*« »' • 1

1

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• : v~ 3 !E l5

eri'

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— > <

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■* <?££??'

... -- - - rT “ ' q j fiii K 9 * *

; ‘ : ’ ‘ • * " ' ^ ' \V* V‘*^.v v - V # ' >*/ m r --s

** * * +* *+, £&->■ - * * -/*;. ■* * ' * •

V** *«*|**-*-f— *» * '

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• ‘ ► t/# t ■ ■ - • ■'

* /. -■ V

. *-cs£* i' . .

4 • * *•

* " +

.* V V

-fc .

“MILTON KEYNES?

THERE’S AN AIR OF CONFIDENCE ABOUT THE PLACE.

YOU JUST CANT PUT A PRICE ON

THAT KIND OF THING”

ROBERT SLY. MANAGING DIRECTOR. TELEPHONE RENTALS.

Financial Times Wednesday June 9 19S2

FT COMMERCIAL LAW REPORTS

Intention insufficient for legitimate last voyage

JADRANSKA SLOBODNA PLOY1DBA v GULF SHIPPING UNES LTD
Queen’s Bench Division (Commercial Court): Mr Justice Staunton:' May 25 1982

BY ROBIN LANE FOX

A TIME-CHARTERER who
Intends, after discharging
cargo carried under the
charterparty, to use the ship
to carry other cargo on a
voyage which he reasonably
anticipates will he completed
within the charter period,
cannot assert that it is a
legitimate last voyage unless
he communicates his inten-
tion forthwith to the ship-
owner.

Mr Justice Staughton so held
wheo giving judgment for the
shipowners, Jadranstca Slobodna
Piovidba, on an appeal from an
interim arbitration award, in
their claim for damages against
the charterers. Gulf Shipping
Lines Ltd, for failure to redeliver
the chartered vessel, the Matija
Gubec, within the time limit
specif ed in a charterparty on the
New York Produce Exchange
Form.

★ *

HIS LORDSHIP said that under
a charterparty the owners agreed
to let the Matija Gubec for one
Far East voyage. The charterers
had an option to take the vessel
for 12 months, " 45 days more or
less," and a second option, to
extend the first period by a
further 12 months, “45 days more
or less."

The charterers exercised both
options. The vessel was
delivered for service on Decem-
ber 8 1972. and the period of
two years, 45 days, was thus due
to expire on January 22 1975.

By mid-November 1974 it was
the charterers' firm intention to
use the vessel after the Far East
cargo had been discharged, to
carry a cargo of cement to Lagos.
It was reasonably expected that
the vessel would complete dis-
charge in Lagos on January 9
1975. That would have enabled
the charterers to redeliver the
vessel 12 or 14 days later, prob-
ably on January 22, the very last
day of the charterparty period.

RACING

BY DOMMtC WIGAN

GOOD CLASS fillies* races are
the feature today, with New-
bury’s Twyford Stakes being
followed later in the evening by
that always intriguing two-year-
old race a t Beverley, the Hilary
Needier Trophy.

. Both races could well develop
into matches near home for
Swift Wing— now thought to be
hack to her best — and More
Kisses should have the pace to
shake off rivals in the closing
Stages of the Twyford. The hat-
trick seeking Miss Realm and

Those expectations failed to
materialise. The vessel was
delayed and was hot redelivered
until April L . The charterers
sought to resist the owners' claim
for damages by reason .of the
combined effect . of two » well-
established propositions.

The first was that, if a time
charter provided for that, was
apparently a fixed and -definite
period, there Was nevertheless a
certain flexibility which would
permit redelivery a few days
late. Thus a time charter "for
a period of two years " was not
broken if. for example, the vessel
was redelivered after two years
and five days.

The second proposition was
that charterers were entitled to
order a vessel on a last voyage
under a - time charter if they
reasonably anticipated that the
voyage would- be completed
within the charter period, either
according to the literal wording
of that period, or as extended by
the effect of the first proposition.

Both those propositions were
well-established. They gave
flexibilty and business efficacy
te what would otherwise be an
intolerably rigid contract

The arbitrator found 'that by
early December the charterers
were committed to lifting the
cement; that on December 7 the
charterers ordered the owners to
perform the voyage to Lagos: and
that the voyage, under foresee-
able circumstances at the start
of loading on December 10, was
not a legitimate voyage, but that
by theu the ship was already com-
mitted to lifting the cement. He
evidently concluded that the
date at which the legitimacy of
the last voyage must be tested
was December 10, when loading
began. He decided the issue in
favour of the owners.

Two questions arose in the
present argument. First, when
a charterparty provided for a
period such as two years, "45
days more or less," was any

Henry’s Secret ought not to be
troubled by Tysandi at
Beverley.

Henry Candy, whose long
wait for e first English -classic
victory ended on Saturday, must
be hopeful that in More Kisses
he has another filly to follow
Time Charter's example in the
major middle-distance event.

On her only appearance to
date More Kisses left no-one in
doubt at Salisbury recently
that she is capable of running
with distinction on the grade
one courses when forging to
victory in a division of .the
Wincanton Maiden Stakes.

If, as seems likely. More
Kisses has come on a few

Williams

O- !L

Interest RateChanges

Williams & Giya’s Bank
announces thatwith effect
from 8th June 1982
its Base Rate for advances
is reduced from 13%
to 12%% per annum.

Interest on deposits at 7 days’
notice is reduced from 10%
to 9%% per annum.

Williams &G!yn’s Bank pic

Grindlays Bank p.I.c.
Interest Rates

Grindlays Bank p.I.c. announces that
its base rate for lending will change
from 13% to 12|%
with effect from 9th June 1982

The interest rates paid on call deposits will be:-
cail deposits of £1,000 and over 9£%

(can deposits of £300 — £999 8J%)

Rates of interest on fixed deposits of over £5,000

will be quoted on request

Enquiries: Please telephone 01-930 4611

» Grindlays
_ 3 LJBankpia

Head Office 23 Peadrarrfi Street, London EOT 3ED

additional tolerance allowed? Or
was the 45 days itself thq toler-
ance to be applied?

. It . was well-settled that the'
tolerance which the law implied
might be ousted by .appropriate

wording. It was also established
by binding authority that where
the parties provided their own
..tolerance, as by the words “45
days more or less in. charterers'
option," that ousted the tolerance
implied by law. (See: the Dione
[ 1975 ) 1 Lloyd's Rep 215. the
A spa Maria [1976] 2 Lloyd's Rep
643, and the TAoreoa A/S [1977]
1 Lloyd's Rep 368).

His Lordship considered that
he was bound by decisions of
higher authority as to whether a
given form of words in a com-,
monly used form of contract was
sufficient to exclude an implica-
tion which the law .would other-
wise make. Mr Justice KetT was
of tile same opinion fa the
Mareva.

When shipowners or charterers
or their broker, or even their
lawyers, needed to decide rapidly
whether a prospective voyage
would or would not be within
the limits of time permitted by
a charterparty, it could well be
understood that they would wish
to have those limits clearly
defined. Tbey already had to
hazard an estimate of how long
the prospective voyage would
take, without also having to guess
what an arbitrator or judge
would assess as a reasonable
tolerance, at some distant date. It
should not be made too difficult
for them to avoid the second of
those perils by the terms of their
contract

In the result the latest ter-
minal date of the charterparty
was January 22 1975, without any
additional tolerance.

The second question was, at
what date did one judge the
legitimacy of the last voyage?
Should it he tested when the
charterers formed a firm inten-
tion to perform it (mid-

pounds a* a result of that first
effort, she could well have the
measure of Swift Wing, a tough
and consistent two-year-old
who, like most of the Arundel
horses, was deafly out of sorts
in the spring.

• Half-an-hour before the
Twyford. anything but a win
for Mr Abdulla's Fine Edge in
the Berkshire Stakes will come
as a surprise to many.

Miss Realm, a four-lengths
winner at a recent Ripon
evening meeting after scraping
home at York, seems sure to
make a bold bid to keep the
Hilary Needier Trophy in
Yorkshire. However. I doubt
if the Easterby filly will be

November), - or when tbey were
committed to. lifting the cement
(early December), or when they
ordered the owners to perform
the voyage (December ?). or
when they started loading the
cargo (December 10)?

If the charterers could not
succeed by virtue of their firm
intention in mid-November, they
did nothing which “further tied
them to the cement voyage there-
after.

The formation 6f a firm inten-
tion by the charterers as to the
use of the vessel Was not by itself
sufficient to establish a legitim-
ate last voyage. The reason, was,
again, business convenience.

A shipowner at some later date
.would be ordered by the
charterer, on the voyage in
question. By that date the
. voyage might appear likely to
exceed the charterparty -time
limit together, with an . express
or implied tolerance. When the
shipowner protested, -. the
charterer would tell him that a
firm intention to perform the last
voyage was formed some days, :
weeks or months ago-

The shipowner would have no
readily available means of veri- .
fying that assertion. On the
other hand, if the charterer ;
really did form a firm intention,
there was nothing whatever to
stop him communicating that
intention forthwith to the ship-
owner in the shape of an order.
If he chose to keep it secret,
then be did so at his own risk.

A firm intention on the part of
the charterer was by itself, in-
sufficient to establish the date
of the legitimacy of a last voyage.

The charterparty expired on
January 22 and the charterers
were liable to the owners in
damages.

, For the owners: Mark
Havelock-AUen (Clyde & Co).

For the charterers: V. V.
Veeder (Lloyd, Denby Neal).

- By Rachel Davies

Barrister

quite good enough to take back
Henry’s Secret, who was tended
a Windsor prize on the plate
when Lester Piggott looked
over the wrong shoulder on
Bright Crocus.

NEWBURY

2.00 — Judy Conkers

2.30— Kiva

3.00 — Town Flier

3.30— Fine Edge**

4.00 — More Kisses

4.30 — Sandal ay

YARMOUTH

2.45 — Miss Thames

3.45— His Turn*

BEVERLEY

7.10 — Karen's Star

7.35— Henry’s Secret***

2.35— B Jaski

LOOKING ROUND gardens this
June. £ have my eye on cutting
far the future. By mid July, my
season far this pleasant task
will reach Us peak.

Oot-of -flower good parents are
easy to miss, so I am marking
the best varieties m my mind:
1 am sure to forget them in the
deluge of roses, mock orange
blossom and campanulas which
distract us in a month's time.

At the lower levels, beneath
sunny walls or in the forward
rose of a border, the winter has
left some serious losses. I have
been filling up with' violas, punk
hardy geraniums and boxes of
tobacco plants. No doubt they
will look as good as many things
which I lost, but I will con-
tinue to miss my older cistuses
and as their season is now
beginning I am watching others’
plants very closely and planning
to rake cuttings from the best.

The cistus is that shrub of
the Mediterranean maquis whose
leaves are too aromatic for the
diet of goats and whose saucer
shaped flowers come in shades
of pink or white, marked with
attractive blotches. On the long
view it is nature’s sad retort to
man’s assault on her former
beauty.

By clearing off her tall trees
and grazing her soft shrubs
with flocks, man made the
Mediterranean into a dry sunny
desert which the cistus invaded
and appreciated.. For once,
nature’s loss was greater than
ours, for the cistus’s flower
scent and shape made up for

some of -the damage to woods
and meadows. Once, Sicily and
Cyprus were thick with trees,,
now they are thick with eastus
and some of the best are among
my favourite garden shrubs.

The winter confirmed conven-
tional views of their hardiness.
The toughest cleariy is the
white flowered Laurifolius
which survived . two severe
snows terms' and- a m^it frost
of 25 degrees on an exposed
west corner of my house. This
is an upright citrus, not the
boldest but the most reliable.
J would bet on it in cold
gardens and like its freedom
of flower and its thin shape to
a height of 6 ft

However, it cannot compare
with the glorious tall form
called Cyprius; This is a shrub
with white flowers blotched
with chocolate brown in their
centres. It grows quickly,
spreads to a. height of 5ft and
a width of five or six. I lost my
old plant hut retained a young
one which was growing in the
centre of an unprotected
border.

The leaves have the resinous
tang of a delicious cistus and
although they .look rather drab
in winter, their shiny olive-,
green effect is pleasant in the
growing season. I would want
this rewarding shrub in the
middle of any new sunny
border, especially cm a lime soil.
The flowers fall quickly after
opening, but they appear so
freely that the shrub persists in
colour for several weeks.

Its only rival among die pinks
is the lovely Purtureus. This is.
not purple, but a rich sunset
pink marked with : a fine dark
eye. It reaches a height just
below Cyprius and pairs prettily
with its taller white relation.

- X also intend to find a named
form called Betty Taudevin
whose brighter colour and
tougher nature impressed me at
Wisley last summer.

The dullest sister, as often,
is among the most widely
bought . Called Silver Link it
is a .wretched disappointment.

1 was talked into baying one 1
and the least of its vices was
its sudden death in the frost
of 1978. .The bush 4s {twiggy,
the leaves- are small and a
felted green-grey, while flic
flowers are -vntfltl and- a meagre
pink. ' 'V '

Do not bother with this one,
nor with, .the low-growing
Corbariensis whose small white
flowers are ‘ marked with . a .
yellow stain at their base. It
is •* negating and the winter
killed it off so its hardiness is
now open to. doubt

Instead I recommend three
of my favourites. Under tall
trees in Wisley gardens I was
surprised to find a good spread
of the big white flowered cistus
called Palinbae. It reaches

2 ft. no more, and is too dense
for weeds to grow through it.
The flowers are memorably
large and fresh so the plant's
slight tenderness deserves to be
overlooked:

At the same height the

beautiful spreading farm : of
Lusitanicus is more, tender but
even more desirable.' Its whtte
flowers t»ye deep' crimson ye*

in iheir centre 'nod appear - 6a
wide- mounds of spreading
branches. : ..

Besides ; a - house' or do a-
terrace I would choose this tong
flowering shrub : wherever "-I
could .shelter It. -.There is .an
aromatic fctybred called -Loretit
which has a similar contrast -'of
colours -but if: grows into’a-buSh
not a carpet. In -botanical'' col-
. lections, it seems to me to have
the most gum on its leaf and the
most strongest scent aanong jts
white and crimson flowers. -- ' ,

There are many others but
none so good as these.-' They
will grow in any sunny site aid
the poorer the soil, the tougher"
their ' performance in ' a , cold -
■winter. . Give a cistus st dry
. stony site and JotL will please it,
By late July, I'll be setting; off .
with polythene bags to Tiarvest
my chosen cuttings.

If -your older plants have been
partly killed, cut their bark iLOY
to the first signs of green oh k .
stem. Remember, - however,
that they will never sprout a gafo
from brown wood. Otherwise*;
take young cuttings from the
base and' root , them easily^ '
the humid shelter of -a; poly-
thene bag or cover for a *eed

bpX. .-

Cistuses grow very f ast a»L
are a dependable gamble;;’ For
little cost and trouble, yotfcfiaa
‘raise a dozen, far .yourselveS x-.\_

BASE LENDING RATES

AJLN. Bank 13 % Robert Fraser 14 %

Allied Irish Bank 13 % Grindlays Bank *12*%

American Express Bk. 13 % ■ Guinness Mahon 12$%

Amro Bank 13 % HHambros Bank 12 J%

Henry Ansbacher 12 1% Heritage & Gen. Trust 13 %

Arbuthnot Latham ... 13 % ■ Hill Samuel 513 %

Associates Cap. Corp. 13 % C. Hoare & Co t!3 %

Banco de Bilbao 13 %

BCCI 13 %

Bank Hapoalim BM ... 13 %

Bank of Ireland : 13 %

Bank Leumi (UK) pic 13 %
Bank of Cyprus 13 %

Bank Street Sec Ltd. 14 %

Bank of N.S.W. 13 %

Banque Beige Ltd. ... 13 %
Banque du Rhone et de

la Taraise SA. 13 %

Barclays Bank 13 %

Beneficial Trust Ltd. ... 14 %
Bremar Holdings Ltd. 14 %
Brit Bank of Mid. East 12J%

■ Brown Shipley 13 %

Canada Penn’t Trust... 131%

. Castle Court Trust Ltd. 13 %
Cavendish G’ty Tst Lid. 14 %

Cayzer Ltd 33 %

Cedar Holdings 13 %

■ Charterhouse Japhet ... 13 %

Choulartons 33 %

Citibank Savings S12}%

Hongkong & Shanghai 121%
Kingsnorth Trust Ltd. 14 %
Knows ley & Co. Ltd.... 13 %

Lloyds Bank 12fc%

Mallinhall Limited ... 13 %
Edward Manson & Co. 14 %

Midland Bank 12|%

Samuel Montagu 12 *%

Morgan Grenfell 121%

National Westminster 12j%
Norwich General Trust 12 1%

P. S. Refson & Co 13 %

Roxburghe Guarantee 13

E. S. Schwab 13 %

Slavenburg’s Bank 13 %

Standard Chartered ...||13 %

Trade Dev. Bank 13 %

Trustee Savings Bank 12J%

TCB Ltd. 13 %

United Bank of Kuwatt 12J%
Whiteaway Laidlaw ... 13 %

WilTTams & GJyn’s 12J%

Wintrust Secs. Ltd. ... 13 %
Yorkshire Bank 121%

BBC 1

6.40-7.55 am Open University
(Ultra High Frequency only).
10.00 Yon And Me. 10.15-1137
For. Schools, Colleges. L00 pm
News After Noon. 1.30-1.45 Over
The Moon. 2.01-3.00 For Schools,
Colleges. 3.53 Regional News for
England (except London). 3.55
Play School. 4.20 Scoofby Doo.
Where Are You? 4.40 Oscar,
Kina and the Laser. 5.05 John
Craven’s Newsnnmd. 5.10
Wikitrack.

5.40 News.

6.00 Regional News Magazines.

6.25 Nationwide.

(L50 Number . One: Pat

Jennings recalls his foot-
ball life.

7.25 The Wednesday - Film:
“The Valley of Gwangl,"
starring James Franciscus

9.00 News.

9.25 Sportsnigbt: Athletics

from Crystal PaJace—
England v U.S. v Australia
v Sweden; Boring (pre-
view of Larry Holmes v
Gerry Cooney); plus
report from the World
Show Jumping Champion-
shaps in Dublin.

10.38 News Headlines.

10.40 The Tony Awards 1982
for achievement in the
American theatre. Broad-
way’s Imperial Theatre.

TELEVISION

Chris Dunkley: Tonight's Choice

Those of us who dislike soccer but have some residual
enthusiasm for other, sports, despite the tedious and despicable
antics which too much money too often produces nowadays, should
be relishing every morsel available in these past few days before
the boredom of the World Cup envelops all. Sportsnight on
BBC 1 brings the first big outdoor athletics match of the season
from Crystal Palace with England competing against the USA,
Australia and Sweden. They also promise a preview of Gerry
Cooney's fight for the heavyweight championship of the world
against Larry Holmes in Las Vegas on Friday. That will he
televised by BBC 1 on Saturday night.

Tonight’s ITV programme competing with Sportsnight (which
as usual is presented by Harry Carpenter) surely constitutes a
unique dash: it is a play about boxing written by Peter Cheevers
and Ian La Frenais called Harry Carpenter Never Said It Was
Like This. It is not unknown for actors to clash with themselves,
but surely no sports commentator ever before dominated Britain’s
two most popular channels simultaneously.

Earlier BBC 2 repeats The Englishwoman And The Horse,
a splendid documentary made by Edward Mirzeoff featuring- not
so much the predictable horsey females of the county set (though
they appear) but much more bizarre enthusiasts

6.40-7.55 am Open University.
10.05 Gharbar.

1030-1055 Play School.
12.30-1.20 pm Open University.
5.10 The Study of Drawings.
5.35 Charlie- Brown.

6.00 The Great Cover-Up.

6.40 The Ascent of Man.

i? ■ Members of Accepting Houses

C. fc. Coates 14 % Committee.

Comm Bk of Near East 13 % ■ 7-diy deposits s.6%; i -month

£8.000/12

Consolidated Credits... 13 % 3-75%. short term ' £8. 000/12

Co-operative Bank *121% month 12.1%.

Corinthian Secs. 121% f 7-dey deposits on sums of:;undnr

£2rs3?!^ }i'| ifs

- -

D 21 ' d * y dopoafts ow»r CI.OOO IN.%.
First Nat. Fin. Corp.... 15}% § Demand- deposits ,10V%.

First Nat Secs. Ltd.... 15}% I Mortgage base rate.

Kbrkshke Bank
Base Rate

With effect from
9th June 1982
Base Rate will be-
changed from 13% to 12^%p.a.

'YbrkshreBank

Reg. Office: 20 Merrion Way
Leeds LS2 8NZ

All 1BA Regions as London
except at (he following tiroes:

ANGUA

1.20 pm Anglia News- 2.45 The Laat
p[ Summer. 5.15 Jangles. 8.00 About
Anglia. 11-45 Clive James and the
Calendar Girls. . 12.45 am Personal
View.

BORDER

1.20 pm Bordor News. 2.45 Ireland
of rhe Welcomes. 5.15 Survival. 6.00
Lookaround Wednesday. 11.45 Border
News Summary.

CENTRAL

1.20 pm Central Nows. 2.45 The
Body Human. 6.1S DiP'rant Strokes.
6.00 Crossroads. 6.25 Contra! News.
11.45 Roplay.

CHANNEL

1.20 pm Channel Lunchtime News.
What's On Where and Weather. 2.46
The Last of Summer 5-20 Croseroads.
6.00 Channel Report. 6.30 Bailey's

(s) Stereo broadcast
(when broadcast on vhf)

RADIO 1

5.00 am As Radio 2 • 7.00 Mtke

Read. 9.00 Simon Bates. 11-30 Paul
Burnett 2.00 pm Steve Wright. 430
Peter Powell. 7.00 Radio 1 Mailbag.
8.00 David Jensen. 10.00-1200 John
Peel (s).

RADIO 2

5.00 am Sttrvo Jones (a). 7.30

Terry Wop an (i). 10X0 Jimmy Young
(a*. 12.00 Gloria Hunnlford (a). ZOO

Ed Stewart (a). 4.00 David Hamilton
(a): 5.45 News. Sport. 6.00 John

Dunn (s). 8.00 Alan Dell with Dance
Band Oaya. 8.30 Among Your
Souvon.ru ( a ). 9.15 Chacfcafield

(a). 9.55 Sports Desk. 10.00 Tom

Menrtard tolls Local Tales. 10.16 The
Cambridge Buskers. 1030 Hubert

Bird. ' 10.43 Channel Lara News. 11.45
□anger UXB. 12.40 am News and
Weather in French fallowed by
Epilogue.

GRAMPIAN

9.25 am First Thing. 1.20 pm North
News. 2.45 Trapper John. 5.1S
Jennies. 5.00 North Tonight . 11.45
Soachd Laithoar. 12.15 am North
Headlines.

GRANADA

11.45 am Wattoo. Waitoo. 1.20 pm
Granada Reports. 1.30 Exchange Flags.
2.00 Crown Court. 2.30 Putting on tho
Stylo. 2.45 The Lana Martel! Show.
3.16 Arthur C. Clarke' 3 Mysterious
World. 4.45 Andy Robson. 5.15 Mr
Merlin 6.00 This is your Right. 8.65
Crossroads. 6.30 Grenade Reports.
11.45 City ol Angels.

HTV

1.20 pm HTV Npws- 2.45 Fantasy
Island 4.15 Ask Oscar! 5.16 Private
Beniamin. 6.00 HTV News. 10.43 HTV
News. 11.45 Ladies' Mon.

730 News Summary.

7.35 Hooked..

8.05 The Englishwoman and
- the Home.

9.00 Butterflies.

9.30 Frost in May.

11.00-11.50 Newsndght _

HTV Cymni/Walas. As HTV West
except:— 12.00-12.10 pm Ty Bach Twt.'
4.15 Here's . Boomer. 4.45 Uygad
Bercud. 6.00 Y Dydd. 6.15 Report
Wales.

SCOTTISH

12-30 pm Survival. 1.20 Scottish
News. 2.45 My Father's House. 5.10
Tsatime Teles. 5.20 Crossroads. 6M0
Scotland Today followed by Action
Line. E 30 Down to Earth. 11.45 Late
Call. 11.50 Pro-Celebrity Snooker.

TSW

1-20 pm. TSW News Headlines. 2.45
TJie Last of Summer. 5,15 Gus Honey-
bun's Mag<c Birthdays. 5.20 Cross-
roads. 6.00 Today South West. 6-30
Teie Views. 6.40 5 ports week. 10.47
TSW Late News. 11.45 Danger UXB.
12.40 am Postscript. 12.45 South
West Weather.

TVS

1.20 pm TVS News. 2,45 Trapper
John 5.16 Watch This Space . . .
Good News of the Week. 6.30 Coast'

LONDON

9.30 am Schools proigr.

11.54 Dick- Tracy Cartoons,
Windfalls. 12.10. pm' -Hd
12,30 The Communicators: >LW
News with Peter- Sissons,' plus
FT Index. L20 Thames :Ncb&:
with Robin Houston. 1 ^D Crcnni .
Court 2.00 After Noon. PISis.
'245 The. Six ; Million DoHariMan, .
3.45 Three Little Words.. ^4^5 1
Yosemite Sam- 4u20 Storybook •.
International. 4.45 Andy Robson.
5J5 Mr Merlin. > •

5.45 News. ' •••••.»

6-00 Thames - News. with 1
Andrew Gardner and Rjta

... Garter- /'

633 Help: Community: action ,
with VlV .Taylor .GeeL. .7 .'
6.35 Crossroads. • •••• ■•-" V‘-.j

7.60 Where There's life.'J |
730 Coronation Street; . j

8.00 TSie BennsL BKH , Show .*

■ .ynth Henry McGebr OEtoh i

. Todd, Jack Wrig&itt and

■ Halt Angels. -ILL-,"-;'

9.00 Harry Carpenter Never
Said , it was like This, i

10.00 News. I

10.45 Middle East— The Longest

.• ••War. • •• t .

1145 Ka^'

12.40 am Close: Sit' Up *nfl--
- Listen with Pam Gems.
f Indicates programme In
black and white .

to Coast. 6.00 Coast to. Coast (con-
tinued). 11.45 City of Angela.. 1240
am- Company.

TYNE TEES : .

' 9.20 am The Good Ward: • 936. '
North East News.' 1.20 pm North East
News. 1 -25 Where the Jobs Are.

2.45 The Love Boat. 6.15 Private' .
Benjamin. 6.00 North East News. . 6.02
Crossroads, a 35 -Northern Life. : 1046 -
North East News:- 11.46 Pavilion Folk : i
12.15 am The Sound .of Silence'.

ULSTER

1.20 pm LuncbtlmB. 2.45 Young
Rarnsriy. 4.13 Ulster News.. 6.15
Gambit. 6.00 Good- Evening Ulster.
10.44 Ulster 'Weather. T1.45 New* at ' -
Bedtime.

YORKSHIRE

H -55 am The Undersea -Adventures
of Captain Nemo. 1 30 pm Calendar
News. 2.45 Charlie's- Angels. 6.15 -
Private Benjamin. 6.00 Calender '...
(Emley Moor and Balmont editions)*" =-
11 -45 The Living Legends, of Jazz.

RADIO

Gregg says Thanks for the Memory,
11.15 Brian Martha w with Round Mid-
night fstorao from mldmaht). 1.00
am Encore fa). 2.00-5.00 You end the
Night and the Music (a).

RADIO 3

6.65 am Woather. 7.00 Nbws. 7.05
Your Midweek Choice (s). 8.00 News.
8.05 Your Midweek Choice (continued).

8.00 Ncwa. 8.05 This Week's Composer:

Vivaldi (s). 10.00 Pariiclan/Fleraing/

Roberts Trio (s). 11.26 BBC Northom
Symphony Orchestra (e). 1J» pm

News. 1.05 Concert Hell (g). 2.00

MW* WuoWy (s). 2.50 Eiger (s).

= 22 < 2°"‘ Even song (e). 4^5 News.

5.00 Mainly for Pleasure (s). 630

Copenhagen Boys’ Choir (g). 7.00 A

Spiteful Fellow (short stonr), 7.30
Chicago Symphony Orch&erre concert,
part 1: Brahms orch. Schoenberg fs).
8.15 Six Continents. 8.35 Chicago
Symphony Orchestra part 2l Johann
Strauss, son (s>. 9.10. A Mozart

Pilgrimage (s). 9 JO Violin and Piano
rocital, part 1 (■). 10.15 Words. 10.20
Violin and Piano pert 2 fe).. 11.00

Adilf Busch conducts Bach.

RADIO 4

8.00 im News Briefing. 6.10 Farm-
Shipping Forecast.
030 Today. B33 Yesterday In - Par-
liament. 8.57 Weather, ■ travel. 9.00
?® W3 - 93B Midweek. Henry JColly

W- . News. 10.02 Gardeners’
Question Time. 10.30 Daily Service.

10.45 Morning- Story. 11.00 News/

11.03 Baker's Dozen, i - ; 12.00 News.

12.02 pm You arid You tfc, 12jj Maxi-
mum Credible Accident faj. 12.66
Weather, travel, programme news. ' 1.60
The World at One. 1.40 The Archer*.
1.65 Shipping Forecast. 290 News'.

2.02 Woman's Hour. 3.00 News. 3.02
Afternoon Theatre. 3.47 Time . lor
VetM. 4-00 News. 4.02 Walberawiok.
4.10 -File on 4. 4.40 Story Time. 5.00
PM: News Magazine. 5.50 Shipping
Forecast. 6.55 Weather; programme
news, s.oo Maws, including Financial
Report. 8 30 My Music • (s) . -7.00
News. 705 The Archer*. 7.20 Check-

7,45 A World ln Common*
8 .1B Choral MusTc from Cambridge (a).
B.45 More then a Garni? 9 JO KaFsHo-
•“25- _ ?-S9 Weather. . 10J» The

10 - 30 Men of Property.
ti.oo A Book at Bedtime. 11.15 The
Financial. World. Tonight. TlJt Today
In Parliament. 12.00 News.

THE EMPLOYMENT BILL

The Financial Times published a series of articles during March and April looking
at Norman Tebbit’s Employment Bill. These articles have now been reprinted as
a booklet and are available at a cost of, 50p ( including p&p) .

Please send cheques or postal orders payable to FinanqiafTunes to:
Nicola Banhain, Publicity Department, 7 j l
Financial Times, Bracken House, 10 Cannon Street, '

London EC4P 4BY.

Registered Office: Bracken House, 10 Cannon Street, London EC4P 4BY.

Registered in England No. 227590.

uae 9

Finasial Times Wednesday June 9 1982

15

TECHNOLOGY

EDITED BY ALAN CANE

■^ding .

S'* «4~2>»

of >

Hazel Duffy repjbrts on a solution to urban transport

Travel by sophisticated bus

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SIjijG^ORB IS the latest in a

- grow£ list of cities which has
-opteff° r the construction of
l ex^re underground trans-

poafystems as the preferred
r soldon -to its urban transport

proems. • - -

- jimleivBenz, the West
.. Gthan bus and truck manufac?
I to£ says that many cities,
-cfld solve their problems by

use of a sophisticated bus
stem rather than opting for
.e more costly .and disruptive
'/hstrucdon of - underground
£ id rapid ■ transit' • systems,
■-ihich, when in. operation, re-
1 .»tdre a high level of subsidy.,
j ■ The ■ Daimler-Benz solution
I aas been registered under the

name of O-Bahn.It is based on
the . flexible usage of the basic
bus. which can be adapted for
use in many different ways
both, underground, on raised
sections, oh guided tracks, as a
high-capadty multiple unit
vehicle, and even as- a. com-
pletely automated driverless
system. The system can be run
at speeds up to 100 kph.

Dkimler-Benz started work on
the O-Babn about 15 years ago.
It has done most of the develop-
ment work- using its own re-
sources at an estimated cost of
DM 25-SQm, but has also
received a Federal Government
grant for development of the
guided track system.

The company also works
with AEG-Tolefunken on the
development of electric drive
equipment, with SEL (part of
ITT) on computer systems of'
.' control,..and. with Ed Zublin on
the construction of tracks.

. The best view of the system's
flexibility is to be seen at the
company's test facilities at
Rsstatt, close to Baden-Baden in
south west Germany.

But the flrst application of
the O-Bahn is a 1.3 km track-
way in Essen, completed In
September 1980 on an old tram-
way track, the vehicle fleet con-
sisting of 21 articulated buses
and three regular service buses
which operate by a

guid-

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O-Bahn Components

Vehicle

L a ^- , - J iid • i. m-'jn

single single .. - single or vehicle train

Drive system

Internal combustion engine • electric motor • other

combinations (hybrid)

Roadway

public mads # . separate lane

at ground level * tunnelled • '■ ' elevated

Track guidance

manual m Slcffronic* 1 track 9 u!ciance • fixed Abidance system

combinations

Command and
control -system

automatic

radio % information • fully automatic operation

' ’system management

Operation

With • demand mode

timetable

mochani cally-controUcd
ance system. * •

' The next stage at Essen, on
which work has started, will
provide 2.5 km of dual opera-
tion ti-ackway early 1983. and
the third stage will be a mixed
bus-streelcar operation in a
2.3 km long tunnel.

The Essen experiment is be-
ing followed up in Regensburg,
where a 1600 m long tunnel
under the old city is planned:
but more important, in- prestige
terms, is the decision by
Adelaide In Australia to opt for
the O-Bahn to link the north-
eastern suburbs with the eily
centre.

Plus point

Adelaide-chosc the O-Bahn as

against a light rail system pri-
marily on grounds of cost; al-
though more expensive than a

Conventional bus system,
Daiiuier-Benz says the O-Bahn
was preferable on a number of
considerations such as maximum
safety al speeds of 100 km per
hour, low noise emission, com-
fort. etc.

The mumifaoturers claim that
the biggest plus point of the
O-Bahn is the opportunity it
offers of starting with a limited
system whch can be extended to
a much more sophsticaled
sysleraf at a later date.

Guided tracks, which make
more efficient use of the amount
Df road space in busy dly
centres, need be laid only where
they arc needed. Where the
volume of traffic lessens and the
road space increases, the bus can
revert to being a conventional
bus.

The most exciting prospect

GENERATORS TOsmvjL
WATER PUMPS upTOBfftCHES
manufactured by

ATALANTA

ENGINEERING limited
Haworth Tratfifi Estate. Haworth Lana,
Chertscy. Sun*y, England.
Ch&rtsey 52655 Telex: 8812538

Low-cost guideway and track
guidance elements are an
essential part of .lhe O-Bahn
system and tin's also applies
to bridges of prefabricated
materials used to heat bottle-
necks in urban traffic.

held out hy the O-Bahn is the
development uf the operational
control system to fully automatic
operation. This is already being
done at the test centre. The
vehicles are controlled anti mon-
itored by a control -centre for
speed and safe distance between
vehicles.

Communication between the
control centre and the vehicles
-is by means uf a line wire, which
will determine the positon of
the vehde accurate to 25m. Fine

positioning is achieved by count-
ing the wheel revoimons.

A computer system in the
vehicle compares the nominal
and actual speeds, transmitting
signals to the actuating links of
the brake system anti ibe en-
gine.

Daimler-Benz is extending its '
research work in the guidance
of public transport vehicles into
private transport, although the
benefits of efficiency gamed by
automated public transport will
be less apparent in private
transport, the main advantages
being the support it will offer lu
the driver and greater safety.

Daimler - Benz executives
admit that selling the O-Bahn
in a world where prestige-
underground projects reign

supreme is a tough assignment.
For the company, acceptance of
the O-Bahn — which, in spile of
the Essen pilot project, is more
likely io lie outside West tier-
many — would provide a ready
market for its buses.

The company has /ailed to
■ convince the Bangkok authori-
ties that an expanded bus
system could solve the problems
peculiar to congested Third
World cities.

The Adelaide achievement,
however, could prove to he the
turning .point fur an enter-
prising system which promises
greater comfort to the long-
suffering bus passenger as well
as being less onerous on the
city’s coffers than the prestige
new underground projects.

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UK enzyme for the genetic engineer

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1(1. .Li ►i':

BY ALAN CANE

•A BRITISH biochemicals com-
■ pany claims to be able 'to
■supply, for the first time -in
quantity, -one of the- most
! 'important new tools available
I to the genetic engineer.

The tool is a new enzyme,
one of the proteins which
- initiates and - ' catalyses
chemical reactions in living
r cells. This particular .enzyme
is- important because' it Is able
to snip out pieces of the
genetic materia! of the cell, in
a very specific manner.

Many enzymes (they are
termed restriction endonu-
cleases) are able to snip out
pieces 'of genetic material

(the count is. over 350 and
rising) hut the new enzyme fs
alone in recognising and cut-
ting between two of the four
bases which are combined in
permutations and combina-
tions in the genetic material.

Why should that be
Important?- Because genetic
engineering is at such an
early stage, in its development
that- “libraries”- of genes
which give rise to specific bio-
chemicals are still 1 being
created. The new enzyme.
Aba III; will help In that task.

It has been isolated io
quantity by P and S Bio-
chemicals in Liverpool, a

small company linked with
Liverpool University.

Dr Peter Dean said Aha EH
was first isolated by Dr Nigel
Brown of Bristol University,
but (bat it proved difficult to
prepare in quantity.

It is extracted from a blue-
green alga which lives in the
salt lakes or the Sinai Desert.

Dr Dean's first job was to
grow the algae in bulk, which
be achieved by mimicking Its
living environment very
accurately.

Isolation was achieved using
affinity chromatography, a
technique which Dr Dean has
perfected over many years. It

Involves finding a material to
which the desired enzyme has
an affinity, and so ean be used
to separate the enzyme from
all other protein in the pool —
the biological analogy to
magnetic separation of metals.

u What we are trying to do,”
Dr Dean said, “is to turn back
some of the £2ra that the UK
spends importing high tech-
nology biochemicals each
year.

“ We can isolate Aha HI in
any amount now, but it will
still he expensive — perhaps
£1.50 a unit"

The market for Aha III
could be worth £50.000 a year.

Challenger wins its heat tiles
in half the time of Columbia

LOCKHEED Missiles and Space
Company. (LMSC) has now com-
pleted the heat resistant tiles
for Challenger, the second of
NASA’s shuttle orbiter fleet and
more than half have been at-
tached to the space vehicle.

Lockheed is providing 24,400
tiles and supplying material to
Rockwell International which
will manufacture the remaining
5,600.

Columbia, the first space
shuttle and Challenger will
have used tiles to protect them
from the frictional heat of re-

entry to atmosphere comprised
of pure silica, commonly known
as Lf-900 and LI-2200.

But for subsequent shuttles
Lockheed is now producing a
different ’protective material
This is known as FRCI-12 (a
fibrous refractory composite in-
sulation— the 12 means 12 lb
per cubic foot).

The material consists of 80
per cent pure silica fibre and
20 per cent of a fibre known
as Nextel. This contains -a small
amount of boron which welds

the two substances into a rigid
structure during high-tempera-
ture sintering.

Bud Alue. Thermal Protec-
tion Systems Manager of Lock-
heed Corporation, said that the
lessons learned since the first
Columbia flight had resulted in
the Corporation now being able
to manufacture tiles in about
half the time required earlier.

Columbia has .about 31,000
protective tiles of which just
over 300 needed replacement
after the first flight.

MAX COMMANDER

Surprise

computer

speaker

JACK MELCHIOR, the well:
known Californian venture capi-
talist, will be a surprise guest
speaker at a conference on
“ first Time Financing ” spon-
sored next week ‘by Barclays
Bank and Covipuier Weekly.

The conference, aimed chiefly
at would-be enirepreneiirs in
the computer business, is
designed to explain how money
can be raised to support new
ventures.

It will be chaired by Sir.
Frederick Wood, chairman of-
die British Technology Group
and other speakers include
entrepreneurs Eddie Bleasdale
and Ron Weedon. Professor
Frank Sumner of Manchester
University will lead the discus*
sion. Kensington Close Hotel,
June 17 — more details on
01-643 3040.

- I

^ 1

Dilution of
methane

THE National Coal Board has-
approved a de-gassing unit for ■
the dilution oF explosive methane
in mines from Tool and Steel
Products Df Sheffield. The unit_
was developed by the company -
in cooperation with the WelsH :
Area Ventilation Office dF the
NC8. Tool and SleeJ is a mem-
ber of the Wincobank Engineer-
ing Group (0742 51004).

- I

Heavy handier .?

ROLLMOVER. a handling device-
for heavy goods such as paper
and cable reels and coiled sheet
able to deal with, loads up to
IS 16kg has been introduced by
Aero-Go. It is available in lhree_
models to take various diameter
materials. More on 0892 870100.-,

? i

UNIQUE OPPORTUNITY

Due to customer default, several new
Diesel 'Generating! Sets, suitable <or
troplcat operation are now available
from stock and at very competitive
prices:

Basic features: 2.1 DO kW to 2,310 kW
1.000 rpm
SO HZ

For further information Please -
contact:

P. Rixhon or G. Buol
Cocker)!l Sambrc S.A.

B-4100 Sera Inn Belgium
Tel: (32.41 ) 36 60.00 e«t 1331 or t
1112

Telex; 41225 ckfcam b

TYNE TEES

ULSTER., j

continues.

The 1981 Balance Sheet figures have emphasized the
growth achieved by Isveimer these past years, confirming
the solidity of the Bank’s financial position which has attained a

level of exceptional importance.

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ISC

Endowment fund

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■ -• -

£

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78 77 • 7S- *» “BO Ul 78

The amounts ara given in billion Lire.

Own means . j

Deposits

Loans and advances

L~

3.000

2400

—Li

ITALIAN

LIRE

-A

P

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£

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FORBGK

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The medium-term hank
for Southern Italy

Head Office and General Management 'nv Naples
Offices: Rome, MBan.'Barl, Campobasso,

Cf tanzaro, Pescara. Potenza.

RapresenlaBve Office: London,

Ll

; :tVV“ r

r--y ;

-3V

Cwmbran welcomes
businessmen with headaches.

You’ll find lots of brick walls in Cwmbraa
But none you can bang your head against.

So successful is business in our bustling new
town, we’ve had to expand - creating yet another
industrial development.

Uantamam Park.

We’ve factoiy units from 750 sq.ft, to 12,000 sq.ft
and larger Serviced sites are also available. And we've
a package of grants and incentives that will give you
relief from todays financial pressures

As any business here will tell you, Cwmbran is a
great place to get things done - and a beautiful place to
live. There’s a large and enthusiastic skilled workforce.
And we're close to major roads, rail links, docks and
airport Formore information, send us the coupon today.

To.- R. W. Hewlett, waging Director

Cwmbran Devel» H TL enl Corporation. Gwent House.Town Centre,
Cwmbran, Gwe ,NP44 lXZ.Tel; Cwmbran 67777.

See Prestei pa 3

Please send riyour Industrial information pack, and details of the
grants and in-* ntives you can give me.

Name

Position 1

Compam-

Addre^

Jk

FT 32

Cwmbran V 1

Business succeeds our way:

... . ... T imfes Wednesd^

THE management page

EDITED BY c

hristopheR

)REN2

Why Eaton’s drivers cut the grass

Nick Garnett on the US group’s attempts to remove British demarcation barriers

mmm

-ONE OF Eaton Corporation’s

- senior manners was strolling
. across the front of toe com-
-pany’s truck transmission plant
-in Manchester, when be came

- across one of the site’s heavy

- goods vehicle drivers. The driver
. informed trim that since he did
^ not have a “ drop ” to make that
-day he was going to help cut

the grass around the buildings.
That kind <xf labour flexibility,

’ which sends shudders through
'■ traditional trade unionists,
reflects a staggering change over
'the past few years hi the work-
ing environment at the Maw .
' Chester site— one of two UK
" plants of the transmission divi-
5 -aion of Eaton Limited, the

* British holding company of the

* U.S. corporation. The other
plant at Basingstoke has another

■ product range, a different labour
relations and investment back-
ground and has not been
involved in the type of dbange
talcing place in Manchester.

What has happened at the
Manchester plant marks it out
. in two ways from others in the
. country that have been caught
up in the drive to improve
. productivity.

Changes in working practices
are much more fundamental

than have been achieved ait most
other companies. More' impor-
tant, managers at the plant view
the changes in the way people
now work not as a goal in them-
selves but as a kind of staging
post towards a time when tra-
ditional union-management rela-
tions wiH have been replaced
by something quite different It
is a programme, though, which
contains potential difficulties.

Bob Hackett, the assembly
works manager, believes there
will come a tune when wages
at the Manchester site will no
longer be bargained over in the
normal sense, and when the
manual workforce win not be
required to clock on. What
makes that remark unusual is
that Hackett was a convenor
for the Amalgamated Union of
Engineering Workers at Eaton
when the working atmosphere
was far removed from what it
is now.

Because Eaton managers like
using words such as “ trust "
and “ behaviour,” ** attitude
change ” and ” job enjoyment.”
they tend to be sensitive about
the hard factual background to
what has happened in Man-
chester,

The plant's history can be
broken down into three phases.
The period from 1965, when
Eaton Corporation bought it, to

1978, was marked by some of
the classic symptom; of low
productivity and unpleasant
management - union relations'
then common in many- engineer-
hag factories, and possibly still
prevalent in much of that in-
dustry.

■ Between 1978 and September,

1979, new senior managers
began to attack some of the
plant's problems, though not
some of its ftinHawMiml handi-
caps. .

Then, in a few hours in that
September, virtually the whole
plant was destroyed by fire. The
re-opening of a new plant on the
same site last year was accom-
panied by new -pay arrange-
ments and a new labour -con-
tract involving wide-sweeping
changes in shopfloor practices.

Before 1978, Eaton employed
1,100 people in Manchester, 840
of them blue-coDar workers. The
site had relatively old equip-
ment and was riddled witih nasty
labour problems.

Alan Best, now the com-
pany’s European operations

manager,, said an instrumental
figure in the changes that were
later to sweep through the site,
described management then as
“autocratic and aloof. There
was a hierarchical and detached,
paternalistic management struc-
ture. It was not open and there
was very little reaching out to
the workforce.”

On tiie opposite side stood a
union "sub-culture " built
around a 15-man group off shop
stewards and 'with : extremely
entrenched attitudes. Apart
from a general air of bel-
ligerence and a virtual absence
of communication, there was a
host of specific problems.

Faulty system

BOARDROOM BALLADS

DAY OF RECKONING

The chairman's great phlegmatic calm
Spreads its reassuring balm, ■

Like oil upon our troubled waters.
Throughout the corporate headquarters;
And soothes away our worried frowns.
Across the business ups and dooms.

With wards of fatherly good cheer ,

For fifty-one weeks of the year.

But sometime m the fifty-second.

On past experience, we’re reckoned.
Even he will fall, instead,

Victim to some inner dread:

And brood upon the now impending
Prospect of the fiscal ending
And a ritualistic beating
At the Annual General Meeting.

★

With negligible dividends.

The annual event portends
A day of unremitting terror.

And pained acknowledgement of error;
When pension-funds and institutions
Exact their doleful retributions.

And vitriolic widows brandish
Their share-certificates in anguish.

While some, with well-rehearsed finesse.
And eyes upon the watching press.

Will make pejorative assessments
Of home or overseas investments ;

Or use their kdLf-adozen shares
To catch the chairman unawares.

Enough to give the board the vapours
When they read tomorrow's papers.

★

And how the shareholders iviU treasure
Their chance to take sadistic pleasure.

Or revel in this king of sports —

Delaying company reports —

Until, the final insult parried,

The annual report is carried!

And, off to gin and tonics boasting,

Oh, what a lovely chairman’s roasting!

★

While he, poor soul, his torment ended.

Or for another year suspended,

A double-brandy on the shelf.

Is visibly his former self !

And offers, to relieve the tension.

In words I wouldn't care to mention,

A fete, wed-chosen apothegms.

On shareholders and AG Ms.

Bertie Ramsbottom

Next week: Corporate Communications.

Restrictive practices designed
around craft demarcation, which
is all too familiar to engineering
managers, had a virtual
stranglehold — - skilled turners
would only work a lathe, for
instance, and filters had to
have mates. That inevitably
bred overmanning. Introduction
of new equipment was a touchy
and awkward business. The use
of an outside demonstrator to
show the shopfloor the opera-
tion of a new lathe itself
sparked off a strike, one of a
number suffered by the plant

As in many companies, the
pay system was faulty. It was
made up of a high, non-variable
basic ' wage element together
with a payment-by-results bonus
system, which provided up to a
further 25 per cent That
placed artificial restraints on
output and was.a cause of fric-
tion between different work
groups.

Productivity was catastrophic
at basepay level, so during
disputes workers could slash
output dramatically simply by
carrying out industrial action
in such a way as to lose only
their bonus.

The levels of output related
to payments were negotiable.
But this frequently resulted in
management settling for soft
options in an attempt simply to
keep the plant running.

Supervisors, believing .they
were the meat in the sandwich,
generally opted to give up much
of their authority, leaving the
field further open to control by
the stewards.

In late 1977. Best, a former
plant manager at Ford’s
demanding Halewood site, was
brought in as manager of the

THE HONGKONG
BANK GROUP

announces that
on and after

8th June, 1982

the following annual rates
\ will apply

Base Rate . . . 12|%

\ (Previously 13 %)

DeposuRate (basic) 9 \%

(Previously 10£%)

The Hongkdig and Shanghai
Banking Corporation

The Britsh Bank
oftheMStleEast

Mercantile Bade limited

' Antony Gibbs rahsis, Ltd.

Clydesdale Bank

BASE RATE

Clydesdale Bank PLC
announces that with effect
from 9th June 1982 its
Base Rate for lending is
being reduced from 13%
to 12i% per annum.

Base Rate

The Bank of Scotland intimates, that as from
9th June 1982 and until further notice, its Base Rate
will be decreased frok 13% per annum
to 12^% per annum. \

LONDON, BIRMINGHAM & BrW,L
, OFFICES— DEPOSITS \

The rate of interest on sums lodged for a XmirmiTn
period of 7 days or subject to 7 days’ x£ce of withdrawal
will be 9i% per annum also with effect froi
9th June, 1982 \ ; !

Manchester facility, and insti-
gated a. programme of change.
He Was working with another
recruit. Fat Tunney, - the
employee - .relations. manager
and a former official ;of the
mine workers’ union. “ The
meeting of minds is totally the
responsibllity of management,”
says Best. “Before, there had
just been abdication.** '

-. Tunney says: “We tried to
get into and underneath the
subculture ' control. Where
there is a lack of communica-
tion, there tends to be censor-
ship of information by
stewards.”

In other words, the plan was
to break down barriers between
management and shop stewards,
adopt a more open personal
approach and increase partici-
pation. “ We created a cultural
shock," says Best

At the same time, manpower
was cut by 10 per cent includ-
ing some severe reductions in
salaried staff. Tighter discip-
lines were imposed and staff
and hourly-paid 'workers coming
back late from the pub were
sacked. Brinks in management
board meetings were removed.
“ That created more squeals
than almost anything else,” says
Best “ but it got us respect"

Two supervisors were
appointed from the shopfloor as
trouble-shooters to . sort out
problems In assembly and cast-
iron machining, the two most
difficult areas.

Productivity arrangements
were revised, allowing some
plant-wide measurement based
on parts of the factory, as well
as individual incentives, which
was better than the previous
system, though by no means
satisfactory, and some of the
separate bits of paper making
up the confusingly-worded
labour agreements were tidied
up. Some new -equipment was
installed.

“We were changing behavi-
our, so this would then affect
attitudes,” says Tunney. “Most
of industry had only been doing
the first”

After the fire in 1979 Eaton
was initially undecided about
where to rebuild. This led to
a powerful bid by Best to per-
suade the Baton Corporation to
sanction a new plant at Man-
chester. It was coupled with a
promise that the management
and workforce could deliver the
necessary productivity. The
workforce was Involved fn a
series of meetings at which the
position was laid bn the line. A

r '**■ -t*

IP**®

Ssl

m

. 1> fn r frHy fa r* -Friday by

Brought on stream (art Aotumn. ■ r£Saj£TSd (right) « **" Rod#Wi& ,
Prince Phifip Orft). Alan

_ ^ wftfa if Best has any specie goals.

statement of intent by the
the employees virtually saying
“.Give us a chance,, well do it,”
was drawn up..

• The eventual sanctioning of
more than £15m (a substantial
part of which was covered by
insurance on the old plant) of
investment on a new plant now
employing a -very much smaller
workforce of 280 at Manchester
was coupled with new. labour
regulations.

Tbe operating agreement was
to be the framework of tbe new
business. It gave virtually total
vertical and lateral labour flexi-
bility within the ability of the
individual. For example, a
skilled turner may be expected
to do stacker driving; operators
may do all the main tenance
work they are capable of; and
electricians can carry out some
mechanical repairs.

There was an acceptance of
new technology, remo val ^ of
restrictive practices, introduc-
tion of a joint consultative com-
mittee, a new shift system, and
a oonmritment. to preclude any
form of unconstitutional indus-
trial action. The company also
wanted to take out of the arena
points of likely aggression, so
the bedding-in process , could be
got on with undisturbed. As a
result, a three-year pay agree-
ment was negotiated Unking
wage rises directly to tile cost
of living and providing in-
creases lower than the KPI to a
strict formula.

At the same tame, the bonus
system was swept away and
measured day working intro-
duced with the standard tones
to do each specific job being
non-negotiaWe. Three grades of
laboiff were created with those
in the skiHed group currently
earning 1133 per week, exclud-
ing a £23 shift premium: .. •

.All tins was coupled with

periodic pianfcwide information
meetings, extra sMJl training,
introduction ■ of problem-
aolving circles, mid generally
much greater consultation. The
company Is aiming to build on
this fry empha s i s in g teamwork,
and encouraging self -manage-
ment, such as the scheduling of

materials.

Groundwork

Best says the "Ol R for

all thSs was at the preparatory
stage before the fire,.- but' ti»e
.destruction of the plant
crystallised everything and
allowed for much more rapid
change. , .

“This is basicaSy about a
philosophy, rather than a set of
-facts," says Best “And the com-
pany has to believe in - it,
People are baszca&y honest and
intelligent and react to toe kind
of environment they work in. It
is a recognition- of people; if
you like. They have got to have
some enjoyment in coming to
work. If you build trust and
respect there should be xm> fear
of disagreement or -of change.”

It II a a r** "V -I nrmai

it to to see atrophy of normal

jnaanagement-umon e r f' an ”"‘'

where union power of the con-
frontation kind is no
seen as neces sary, where there
would be no aggressive P*Y
gainlug and where
woidd be reduced to the nn m *

nynrn.

There ere some worries which
the- company can see, however.
H union power is negated to
such an extent Eaton couM.be
challenged by the union
structure from outside — possibly
in the shape of the total AUEW
district committee.

It’ also places an onus on
Eaton to ensure it chooses the
rit£it managers. Within this
looser • ' managerial - shopfloor
arrangement which the company
is talking about, tbe workforce
may be able to carry manage-
ment waywardness. But a
dictatorial management leader-
ship which constantly gets
thing* wrong could generate the
re-creation of a more traditional
union-management relationship.
Tbfe is what the company is
hoping to see, toe of its own
accord— and with the ’ full
support of its workforce. -

. THE INSTIIUIE OF
MANAGEM^O! CONSULTANTS

professional practice, maiii&rinedbftbeinis an mtemBtsmaLsecvicc

appr o pri ately qualified Ifenbos-

KatcoDsoItanf assistance
nit tbonia touch with

hnntotf gpfiwi wrriMrgft.

■rethtedept h o fb oa r neMir

dradaf iizfl Monbosof tbe
of Pra$es8tanal£oaducL

specialist md consoi&ngecxiriseremdtsd of fauMerabox of tbe

Tn^itut*> »r«tjw^gn w m^^ ihytyvfr nfPro^BMniBirpnw>hirt

lb makeco ulact - with aR^gtered MHiyimTi^ CciiMultaiitorshn
to team more about the IMCProfosiaDi Easter please write or
trigAonefigbifonnation Sheet BI/8E
TbtheBMjstiaqlMCBraCBwnnalBe^ste^^atOroniwdlPlaoq
Inrai0uSW72!LGl'I&phoDeti&SH7285&

Address.

PAINTERS OF THE

AKUsCalBdko

Mall Galleries The Mall

London $W1

(Mrlbfijpi&iBn)

June 3-July 3 1982

Pptnd^g m c b& igSaiAg%XMni^pBi Ail B B »aiaOT

Business Acquisitions
in North America

T , j fW -Wv im vijer f- m -

S pa-wi ly

If you are considering a, business acquisition hi the United
States or Canada, Goddard Franklin can assist by^.

- Jdcntlf ring . AOnUe investment targets.

• Assessing tlwir profitability and oompri^Hy with efientf
organis atio ns.

' r . Determining afair price.

•. Negotiating a workable transaction.

• Structuring the deal to minimis* taxation and naxhniM
return on investment.

• Ongoing business management:

Principal Laurence Franklin wifi visit London, June Mthroueh i*
K-SSSSsnS' 110 * through M iv Reginald Frankfi^

NtereCinmm Toronto- 416/59S-9640
Providing management and ffaanoa! services to coroo

substantial fejdhrkfcissilsi cor PoratJor»s and

costs

There are many places wfiereyou can site a nou r,

Barbados can probably comply

| t |r ?

: ' V ?JT

WEMAKElTEASVs

djwndoyr coovetentlpS^ ** P"**-

MEMAKE IT PLEASANT:

Financial Times Wednesday June 9 19S2

THE ARTS

Spitalfields Festival

New London
Chamber Choir/
Spitalfields

After an impressive debut in
three concerts in St John's.
Smith Square, earlier in the
year, the New London Chamber
Choir brought a programme
culled from that series to the
Spitalfields Festival on Monday
bight. It was a finely .ha lanced
pairing of a recent work by the
choir's conductor James Wood,
and Gesuivldn's Trnebrae
Responsories for Holy Saturday.

The astringency of Gesualdn
was a necessary antidote to
the sometimes lingering sweet-
ness of Wood's Ode to St
Michael, completed in 1981 for
Che Schola Cantorum of Oxford.
Wood is an outstanding percus-
sionist and. as this convert
proved, already a fine con-
ductor: he also studied composi-
tion under Nadia Boulanger.
Yet Bouiangpr's elegance and
concern fnr surface appears 10
have left its mark on Wood's
music subcutaneously, if at all.
The principal influence hehind
the ode was the Messiaen of

Cinq Rechxnls. and the fond-
ness for tweet harmonies con-
jured up (possibly coincidental)
suggestion of John Tavener.

This seeing of Psalm 103 and
two pass-ges from Revelation
is -lavish n its use «f resources:
a doubli choir, two soprano
soloists, wn sets of gongs, and
a tape c organ, another choir
and ganehm. One wished -they
could hve all been more gain-
fully mployed. The work’s
ritualistc skeleton, strict canons
alternaing with the wild and
exotic passages from Revela-
tion, Fnts at naivety, and the
abandfiment tn undisciplined
texture or tinkling, "poetic”
hackgounds suggests a simi-
larly unsophwti cated approach
to crating sound.

Th New London Chamber
Choi - responded weH to every-
thin; the score demanded of
then ns they did to Gesualdo's
Resonses. performed here enm-
plet with the Benedictus he
wire as appendix. In the
sevre nave of Christ Church.
Spalfi elds. It sounded gravely
heutiful and Mr Wood’s care-
ftiy pointed and punctuated
cJducting gave it more than
aiple room and flexibility.

ANDREW CLEMENTS

The Tamingj ofthejl^

Rosalind Carne

The Davies
piano sonata

On Monday a late-nigh
recital at Che Spitalfields Fest
val brought the second Loada
performance of Peter Maxwf
Davies' Piano Sonata, again
its dedicalee Stephen Prusi-
Mr Pruslin occupies n
altogether special place n
recent British music, above H
through his collaboration ilh
Davies and with Harrison Ft-
whisrtle— sometimes behind-he
scenes, hut also -as enseble
pianist with Che groups for
which they have compasecthc
Pierrot Players and the 1rp s
of London. The Davies Sia'a.
however, places him in . un-
accusLomed spotMghi.

By ordinary' concert stan-
dards. Pruslin is anyth? but
a seasoned solo pianist, jerest-
ing musical ideas nerge.
struggling, as he picks'® way
round the gaping' hole in his
technique. That is won hear-
ing, but a trial too pay tin s
Sonata in C. Hob. Xi 48 was
a case in point in tl recital
— flustered, dodgy, erilously
insecure of rhytb Even
Ravels little "Aleut *w le

mm de Haydn ” reeled way-
vvardly from bar to bar, with
curious lights thrown upon the
music while the essential
demure poise was quite jetti-
soned. Probably Pruslin was
nor aiming to be definitive.

The Davies Sonata was
another matter: " definitive " is
exactly what one expects Prus-
lin to be with it. in the circum-
stances. It is long, knotty and
taxing, and he applied himself
heroically. Broad lines were
made bravely articulate, and
snme dramatic detail was
powerfully telling. It is good to
hear that he is about to record
the work — the document was
needed.

But there were also some
complex metrical passages in
which note-values scarcely
approximated to those written
in the score: was that licensed ,
rubs to. or was it involuntary?
There were washes of neo- i
Impressionist arpeggiations
which seemed to cry out for
the. lucid fluency of a virtuoso,
and chains of chords topped by
trills that juddered and stam-
mered. Prusi in's association
with the Sonata is established
for good, but it will be salutary
to hear what another sort of
performer may make of it.

DAVID MURRAY

Field'goncertos/Barbican

David Murray

John Field t 1 • 52-1 837 )
invented the nocme. more or
less, and it ensur him a niche
in musical histf. His seven
piano concertos ■'* much less
often remember: but they are
being honoured the Barbican
this week by is compatriot
John O'Connrvitb Nicholas
Kraemer and New
Chamber Orcttra. This is
something mo than an exer-
cise in exhuation, fur the
dewy charms t'he music are
real, the perfiners are stylish
and the curre weather induces
a mood in win these inventive
and. disarmi works can be
gratefully ajeciaied.

On MondfWe had the first
two concert' on*? a product or
Field’s niid-ms and the other
much — >re full-bloodedJy
Romantic— decade or so later.
Winsome ies. elaborated in
piano-filigr. are the heart of
the maiterhc soloist holds the
fnregrouniunchaMc-nged. with
the " ansd ration designed
above alt° set bis prcliy
decora tio in relief. The high
register -f 'be piano is
deTichiec explored, over and
over agi. for liille of the
musical latenal requires a

tougher note to bp struck: the
occasional vigorous sally never
develops into a dramatic
assault.

That isn't to say that the
expressive means are trivial,
still less brittle. If the com-
poser's little world of feeling
is a matter of gentle palpita-
tions and shy confessions, it
has an original stamp — even
the passage-work has a fresh-
ness beyond the routines upon
which his immediate successors
traded. John O’Conor has the
necessary clear and delicate
touch, and the right unemphatic
bravura. Mr Kraemer and the
orchestra make a sensitive
match for him. The last three
concertos can be heard tomor-
row and Friday.

NatWest backing
for “ Dream

National Westminster Bank
will continue to sponsor A
Midsummer Night’s Dream, the
Royal Shakespeare Company’s
second production in its new
Barbican Theatre on June 16.

This production was first seen
at Sintiford last year sponsored
by National Westminster Bank.

The scramble is on. among
those who think they know
better than the rest nf us what
is good for us. to staunch the
flow of new television systems.
From Mary Whitehou.se tn the
London Business School (per-
haps not such a great span)

! the paper floods out. urging Lha
Hunt Inquiry to vote to" " regu-
late ” cable television. Mary
Whilehoutse is calling for yet
another public body specially
to control cable TV. Professor
Eh re n berg and T. P. Barwise
of the LBS declare there must
be a national supervisory
framework. The anxiety to urge
Hunt to declare in favour of
controls results, no doubt, from
the recent appearance of the
Government’s own ” Repnrt On
Cable Systems ” which although
it is a pretty lacklustre publica-
tion does opt for deresirictton
and " self-regulation after the
manner of the advertising or.
newspaper industries."

My own view is that for once
historical inevitability is on th?
side of freedom of expression.
Nanny may think she knows
best, and she and her friends
may stick their fingers In a
number of holes in the dyke for
a while, but sooner rather than
later they will find the elec-
tronic information flood no
longer spurting nut of holes
bur coming straight over the
top in tidal waves. Controllins
it will involve the sort of
totalitarian measures necessary-
in the Soviet Union to control
the previous information revo-
lution: printing (lately en-
hanced by photocopiers which
are illegal in Russia except
under Government licence)

Only this week it was revealed
that Radio Luxembourg has
already honked space on a
rocket scheduled for 1985 to
launch a £2(Khn satellite to pro-
vide Britain with a new tele-
vision channel carrying feature
films, light entertainment and
comedy with a strong news ele-
ment. It might start at about
the same time as the BBC’s two
new satellite channels. If the
American experience is any-
thing to go by. that could be
merely a drop in the approach-
ing torrent.

But won't most of the pro-
grammes in that torrent be
rubbish? No doubt they will.
However, as with newspapers
and magazines, music and
books, the blessing of freedom
entails the responsibility and
the chore of wading past the 90
per cent of rubbish to settle
upon the 10 per cent of worth-
while material. In any case,
given the choice, most people
prefer rubbish as the ratings
prove every week.

*

Optimists would say that
Thames Television's series The
Middle East — The Longest War
which started on ITV last night
with “ Palestine, A Nation In
Waiting " was extraordinarily
timely. Pessimists would say
lha* if they had delayed even
a few more days the series
would have been out of date
and useless. Even now there
are touchy moments: "The
threat of an Israeli invasion

Scene from 4 The Longest War 9 .

Television

Chris Dunkley

Freedom — even if
it means rubbish

constantly hangs over Lebanon "
said last night's commentary.

Taylor Downing who produced
and directed doesn't believe in
babying his audience, as we
learned with the series on
Northern Ireland The Troubles.
If telling the story means a
succession of talking heads with
precious little visual relief
then you can be sure that talk-
ing heads is what you will get.
And we did. Since they included
Yassir Arafat (and his brother
the doctor) Leila Kaled (look-
ing more beautiful and more
bourgeois than ever) and a suc-
cession of other Palestinians
whose heartfelt assertions of
determination to regain their
homeland were frequently
backed by poignant mood music,
and considerable talk of
Zionism, there will no doubt be
considerable Jewish fury this
morning.

However. Thames can point
to Ihe impeccable Jewish
credentials of executive pro-
ducer David Elstein and, in
fairness, claim that Downing's
use of music is unusually
thoughtful and wholly impartial.
He ha 5 la ken his cue from
Richard Broad whose earlier
series on Palestine (also for
Thames) established the useful
trick of having common
snatches of music for the home-
less of any nationality, for the
victors of any nationality, and
for the vanquisher! of any
nationality. Fury will only he
in order if tonight's episode
“Israel. A State of Insecurity”
and tomorrow's "Lebanon. The
Field of Battle ” are Created any
differently.

+

The present official news
blackout over the Falklands is
slightly less Infuriating than
Ihe original absurd mess in
which television behaved as
though everything was normal

while showing us little but
Argentine footage. What
British military men and civil
servants will learn from this
w’ar. one hopes, is what they
ought to have learned long ago
from Vietnam: that the world
has changed- radically since
1945. but much more on the
home front than on the battle-
field.

In a letter published in the
FT last Thursday. Mr David
Gunn wrote: ” Your TV critic
highlights an attitude expressed
increasingly by the media
throughout the Falklands war
and which, if taken apart, can
be roughly expressed as ‘Never
mind winning the war: just
make sure we have enough
material, fast, to fill our
columns and TV screens.' ”

Nothing I have ever written
could be interpreted even
roughly as “Never mind win-
ning the war,” but much more
importantly Mr Gunn has
missed the point: that in order
to win modern wars it is neces-
sary tn fight successfully not
only on the battlefield but on
the screen and on the page as
well, not in any military sense
but for the hearts and minds of
the international public. And
truth is by far the best weapon.
For several weeks it seemed
pretty clear that Britain was
losing that war on screen and
pane.

Further on Mr Gunn inexplic-
ably brackets together the
immediate dissemination of
news about what has already
happened with speculation on
future moves, seeing both as
a hazard to the troops.. I would
have thought there was a world
of difference between the two,
which is why my criticism all
along has been a*med specific-
ally at British failures to
illustrate on television Britain's
success, from South Georgia
onwards.

A transatlantic
Kate in
Regent’s Park

A good dose of pacy, extrava-
gant, stage business rescues
Shakespeare's most unpalatable
comedy. No sensible woman will
endure taming and my principal
problem in responding to this
otherwise highly enjoyable pro-
duction, is that Kate O Mara
j makes an unconvincing shrew
and a horribly convincing,
docile, bride.

Christopher Neame's Petru-
ehio reeks a Mephistophelean
charm, looking like a Chicago
gangster in his white waistcoat
and pinstripe suit. He sneers
and snarls his lines through a
wide, knowing grin, at his best
when easing into intimacy with
the audience, addressing them
in challenge. Can anyone
suggest a better way of curbing
a headstrong mistress? No
offers. '

The Transatlantic style pre-
vails, dated somewhere around
the late 1940s. Half the menfolk
and their servants appear to
have defected to the American
army, and arrive in Padua on
leave from Florida, instead of
Florence. The gimmick pro-
vides some lively humour, not-

p-ml Kaffield who
ably servant role,

turns a ““"f* wiae-cracking.

Bioodello. into a ww-
gum-chewirig t.i. ppy tap

He breaks^ 0 a- JgS only
dance routine tonne ^ ^ chard

original sonp- D p1y i n »er-

wealthy widow. sa “^ rS accept

the stage ..Vrrrfiraeeable

5u. ,,r qu1SrSf keeping vAth the

i* is the surrounding roaemna

mS’rfthffti'llwt pfrfnSances

Another Florida
is beautifully poised
the wide-eyed innocence ot th e
college boy and the incipient
macho of the Latin male.

James Cairncross makes a
solid central figure as the ouf|
ness-Iike father. Baptism Jet-
ting up the assets of rhe hopeful
"mis in his handy P^ke^
book. Attention to numerous
such tiny details adds up to an
eminently watch able "P e . nUI £i2
(he Open -Ur' theatres 50th

season.

What is most worrying, how-
ever. about the Gunns of this
world is what they imagine
Britain is fighting for? If not
for a society in which an
electorate well informed by the
mass media controls (among
other things) its own military
arm via elected representatives,
then what on earth for? If Mr
Gunn thinks it better to have
the military in charge and
doing whatever they like while
the populace is fed via a sub-
servient mass media with what-
ever rhe soldiers choose, isn’t
he on the wrong side?

If 1 were in charge of BBC
arts programmes I would be
worried. As the two flagship arts
series go into their insane sum-
mer hiatus ITVs South Bank
Show is as far ahead of the
BBC’s Omnibus as ever. True,

SBS has shown an unjustified
fondness for sw aiming about
New York, but judged over all
it has had another most impres-
sive season, crowned by what I
was slowly coming to tbink was
impossible: a highly successful
television programme about
poetry.

Andrew Snell's programme on
Philip Larkin was technically
adroit. Lacking the poet himself
he gave us scrupulously
researched illustrative film
which never created banal tauto-
logies with the words. The same
could not be said of BBC2’s
Larkin programme six days
later which on the word "town”

cut to a town and on- “dome” Christopher Neame and Kate O’Mara

cut to a dome and so on. Worse.

the BBC programme was called ~ ". ~ '

ft’s Mu Pleasure but presented -i-j _ Ti

by Roy Hatters! ey as though JjOOK IvCVICW.

entitled II hi With Deep Regret. — ■ —

To make matters worse although PUmAHt f'vSen

Judi Dench read beautifully VlCmeni

Alan Bennett who sounds like

ro be wholly unsuitable for iSS The Colonel — I am tempted to write

SsSSjSsS and the dancers

com env where Larkin sees tra- 5npi»»v Walker and It makpc

gedy, and the words were all De Basil’s Ballets Russes by rZkinzUU ? tale

wrong those familiar Bennett Katbrine Soriey Walker (Hut- £,iS££

tones. But the essential dif-
ference between the two pro-

chinsonr £12.95;

Colonel W de Baa^ hw often bafiKmp^iel

‘On the Razzle’

There have been cast changes
in the National Theatre’s suc-
cessful production of On the
razzle at the Lyttelton. For-
tunately the key role of Zangler.
the malapropristic grocer, is
still in the brilliant care of
Dinsdale Landen. who goes over
the top and takes on the audi-
ence just as writer Tom Stop-
pard intended. Felicity Kendal
continues as Christopher, an-
other inspired piece oF casting.

Alfred Lynch as the counter
clerk Weinberl and David Roper
as the "classic” servant Melchior
sustain rather than improve nn
ihe original periormers but the
ladies seemed sparkier with

Ciaran Madden as Frau Fischer
and Meg Wynne Owen ■ as
Madame Knorr.

Some of Stoppard's verbal
gymnastics are lost in the
frenzy, but there is no play in
London which combines farce
and humour so well. There are
also some impressive speeches
— about commerce in particular
— which lift the whole enter-
prise on to the highest plane.
But it is the non-stop jokes that
make the piece: I particularly
liked the r.estaurant that was
so smart that the ploughman’s
lunch was six oysters and a
creme de menthe frappe.

ANTONY THORNCROFT

grammes was that where Hat- had a bad. press. “He thrived ^

tereley had absolutely no sym- on intrigue. It was as salubrious ™ U „

pa thy with what the poems an atmosphere for de Basil as ■“ ” bard for us, after half
express (as he readily admitted) a dank cellar is for a fungus a “Ntury, to understand’ just
Snell, who never even appeared, culture" is a fair sample, from how thrilling were the years
seemed to have deep sympathy. Bernard Taper’s book on ' vtien . following Dlaghllev’s
ikTnro wnn-vincr ct-iii tnv Balanchine. But any man who. death and the iMspersal of his
BBC juri T^lek^ft^ SBS the Ballets Russes .5 en f, B J tni1 ’ Erector of

put up the shutters. Granada which emerged in the Monte Carlo opera house,

presented A iSS^AtUbrlf eariy 1930s to huge success, and and Colonel de Basil managed
60 minutes on Murray Perahia CWiW maintain that -company t£> ? tar *_H p the Ballets Russes
in which biograpb^ autobio- despite massive financial prob- the age when

graphy, performance, and even lems, must needs make enemies. - SS^Enirtn* The

some charming old coloured De achievement was Baby Ballerinas— the just teen-

horae-tnovies were woven to- that, for all the factions and Baronova and Toumanova
gether into a seamless whole secessions,. defections of dancers ^ n “. Rjawucmnska — were rhe
with such skill in production and choreographers to other darlings of Europe and America.
(Basil Coleman. Stephen Mellor companies, bitter quarrels and The inevitable splits, the
and Norman Swallow) and law-suits about the rights to shuttlings by dancers between
especially editing (Michael ballets and the magic title “ de companies and- by an ecstatic
Foale) that it looked effortless. * Monte Carlo." he maintained public between theatres (Coven t
From the way the sound swam the glamorous image of the Garden and Drurv Lane with
across the picture mixes, link- Ballets Russes through thick rival. Ballets Russes seasons in
ing one scene almost subcon- and, very often, thin. June 1938 were the scene of

sriously to the next, to the - His stoiy and that of the the celebrated “battle of the
photography around Aid en- company which he controlled for ballets ”). are detailed in liv^
burgh, it was all quietly superb, two decades between 1931 and Best and most cogent fashion!

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7040 SUSANNAH YORK TOM BELL.
TOM BAKER. RALPH BATES PA UL A
WILCOX A IRENE HANDL In HEDBA
GABLER. 9 wft only.

CHICHESTER FESTIVAL THEATRE. 02 <43
761312. Season snonsored b<r Mtrtini
t Rossi Lid VALMOUTH Ton ! 7. SO.

GREENWICH. S CC 01-656 7755 Eons
T.43 i Juno 21 7.0i Mats Sat A 0

From June 16 Coward's DESIGN FOR
LIVING.

?u6.30 ALAN AYCKBOURN'S nn.
... SEASON'S GREETINGS.

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F.T. CROSSWORD
PUZZLE No. 4,892

ACROSS

Z Sack coniaiziing a guinea —

. that's the amount (6)

4 Doctors take in everything for
a game on board (8)

10 Vegetable obtained from a

. short trip with a companion

(7)

11 Not exactly fit in covering
hidden ■ danger (?)

13 We return with little credit
to the gang (4)

13 Co-op America endlessly
gives us light entertainment
(5. 5)

15 Fish for one who takes a
nap (6)

16 Sport round the marsh— eee
it in colour (71

20 French comic returns In time
to cause disturbance (7)

21 Meal for father among others
(6)

24 Ill-supplied with money— that
takes the biscuit (10)

26 Still one has abominable con-
nection (4)

38 Confused oration about Canad-
ian city (7)

29 Number one is his chief con-
cern (7)

30 A garment In .as attempt to
burlesque (8V

31 Drowsy agent round the shel-
ter (6)

DOWN

1 I ask chef about something
to eat (44)

2 Pet subject of experiment
(43)

3 “And we lave wits to — >
and praise to gfve ” (Jenson)
(4)

5 Results frinn the philosophy
of " an eye for an eye." (8)

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17 .Whence come wine end
rumours (9)

18 Get going with the chief tips-
ter (5, 3) •

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thankless Muse " (Milton) (8)

33 Armed- guard in a car (6) ' '

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28 Old port of Rome (S)

l D § a g a g^|

IS

Financial Times Wednesday Tuiie 9' 19S2

HNANC 1 ALT 1 MES

BRACKEN HOUSE,: CANNON STREET, LONDON EC4P 48Y
. Tetegrams: Rnantimo, London PS4.Tetex; 89$4671
Telephone: 01-2488000

Wednesday June 9 1982

The ruin of
Lebanon

ISRAEL’S INVASION of
Lebanon now appeals to be
-moving well beyond its initially
stated intention of ejecting
Palestinian guerrillas from
positions where they could shell
the north of Israel. The defini-
tion of security for Israel looks
as though ot may be broadened
to encompass a total restructur-
ing of the Lebanese political
map. The aim is, as Israeli
officials have stated, to create a
Lebanon with which Israel can
sign a peace treaty.

The Israeli Government
seems to believe that its forces
have first to deal a heavy blow
to the military capability of Mr
Yasser Arafat's Palestine
Liberation Organisation and J .

then to ensure that the bulk of Broadening

considering any immediate sanc-
tions against Israel, although it
did support the UN resolution
r ailing for a ceasefire and mili-
tary withdrawal.

The implication which may
be drawn, not just by lie Arab
states, is that the U.S. is. not
greatly distressed by the' wider
political objectives of the Leba-
non invasion even If it may- de-
plore the loss of life Should
Israel prove militarily success-
ful. in Lebanon it might then
be expected to be more success-
ful in imposing its own version
of a political solution on
Palestinians living under occu-
pation in the West Bank and
Gaza.

his guerrilla forces are driven
out of Lebanon.

- Next, the Israelis would
require the withdrawal of the
estimated 30.000 Syrian troops
who have been in Lebanon
ffince 1976 when they arrived
to put an end to the civil war.
Both objectives would prove
costly in lives and damage to
proporty and indeed are
already proving so. They also
run the serious risk of a full-
scale war between Israel and
Syria, with Syria receiving
support from the Soviet Union.

Preoccupied

' Israel has been gauging the
wider political risks with some
care. Since signing the peace
Treaty with Egypt, Mr Menahem
Begin, Israel's Prime Minister,
has probed the extent of Arab
and Western tolerance to his
interpretation of Israel’s
security requirements. Israel
successfully bombed the Iraqi
juidear power plant near Bagh-
dad. It reaffirmed its annexa-
tion of eastern Jerusalem. It
applied Israeli law — virtual
annexation— to Syria’s Golan
.heights.

, The Arab countries, without
-’the leadership of Egypt, pre-
■ occupied with their own
domestic squabbles, and con-
cerned at the revolutionary
ardour of Iran, made little
effective response. Neither the
U.S. nor Western Europe were
"willing or capable of restraining
Mr Begin.

It was therefore not such a
giant step for Mr Begin to con-
sider an altogether more ambi-
tious plan for Lebanon. The U.S.
has already said that it is not

Mr Begin has repea ted-ly de-
clared that the West Bank is an
indivisible part of the biblical
land of Israel and should re-
main so for ever. The defeat
of the PLO in Lebanon and the
securing of that country against
any future Palestinian pre-
sence would be seen in Israel as
a step towards the West Bank
goal.

The Camp David agreements
signed by Egypt, Israel and the
UJ3. provide for a negotiating
framework which would even-
tually arrive at a solution for
the West Bank and Gaza. The
Europeans, • through their
Venice declaration. caHed for a
broadening of that . process
through Palestinian participa-
tion. Mr Alexander Haig, the
U.S. Secretary of State, laid
emphasis last week on “legiti-
mate Palestinian aspirations.”

Israel' alone appears to have
opted for the military path to
a solution. It is - just possible
that in purely military terms it
will succeed. But the cost to
others is high and mounting
daily.

Negotiation

Too many countries, too many
people and too many deeply-
held beliefs are at stake for the
Palestinian issue ever to be
solved satisfactorily other than
through negotiation. As Mr
Douglas Hurd. Britain's- deputy
Foreign Minister, said yester-
day: “I don’t think ■you can
win Israel’s security indefinitely
by occupying other people's
land. That simply produces ter-
rorism." It is to be hoped that
this message is heard more
clearly in Washington.

BRITAIN’S MINERS

By John Lloyd, Labour Editor

... - <

ft:..

M’

R ARTHUR S CAR G TT J »
President of the
National Union of
Mineworkers. believes the
National Coal Board wants to
halve Britain's mining labour
force of 211,000 by the end of
the century. He Is probably
right: and he is dedicated to
stop it

The Board’s attempt to dose
down some 21 loss making pits
was scrapped amid fanfares of '
embarrassment last February:
Mr Dayid Howell, the then
Energy Secretary, announced .a
“rethink'’ on coal industry fin-
ances. and the NCB shifted
from ' national confrontation to
area-by-area discussions on pit
closures.

Since then, it has closed’ 12
pits without significant objec-
tion. The unlucky 13th was
Snowdown Colliery in Kent:
there, the Kent area of the
National Union of Mineworkers
has decided to fight, and the
national executive will discuss
a possible widening of the
action tomorrow..

Mr ScargiH wants a militant
stance: he will have to convince
a good many doubters on the
executive, many of whom want
the issue to go through national
disputes procedure.

The. miners’ leader,. wields,
considerable authority within
his own union, that authority
resting largely ' on thq inas»ive-
70 per cent of the vote he
achieved in the presidential
election early tiris year. He is as
much a household name and
face as Mr Len Murray, the
TUC general secretary: his
public -presence, on platforms
like the one given him by CND
last weekend, is uncompdomis-
mgly radical and passionate: he
did not trim his policies to gain
election and he shows few signs
of doing so now.

These policies are all of a
piece, and they are aimed at
maintaining the mineworkers as
the cutting edge of the British
working class. To do this, he
needs to keep their numbers up
and. their industrial, leverage
formidable.

To. that end, he,

• Opposes nuclear power. The
replacement of coal-fired power

COAL BOARD OPTIONS

Tarry Kirk

Snowdown Colliery in Kent— whore the miners have decided
to make a stand against closure

WHEN the National Coal
Board’s figures are released
next month they will show that
the UK industry made a.
marginal profit in file 19S1/82
financial year-rafter the.
payment of £4ffihh in grants.

The NCB notes loftily that
there “ is not a coal industry in
the world, which is profitable
without grants.” But the hoard
is well aware that the present
Government is looking to phase
out all operating grants
— roughly 80 per cent of the
total — to the British cod
industry by the mid-1980s-

Pians for an overall
improvement in profitability
inevitably call for the closure
of inefficient pits — in some
mines the Board & losing as
much at £20 on every tonne
of coal produced

In 1947, when the coal
Industry was nationalised, the
NCB had 1,000 mines. Today
there are 200 employing
211,000 miners. 1 Since 1970 a
total of 02 pits have been
shut which means the average
closure rate is nine a year. .

And the NCB, which, invested
some £700m in the last financial
year, is moving slowly but surely
towards the use of big, modern,
less labour-intensive mines —
the so-cafied super pits.

The new mine at Selby in
Yorkshire, for example, will be
able to produce 10m tonnes
of coal a year with between

4,500 and &00Q men by he
early. 1990s— and possfbk
sooner. The average exiting
pit employs- 1,060 menr- md it
would take 15 average- jds ; -

today to produce 10m tomes ,

of eoaL .which raeanuttoa '
times the Selby workforce
The NCBeurrently has round
30 topdass pits.' Host of hem
are large as wefl as efficie*
such as Kelhngley in Norb
Yorkshire which produces .75m ;
tonnes a year with 2*300 inn.

But- a numbed make up forheir
lack of size by high productivity.

The NCB reckons it has .
another 150 “medium to god.!*
mines which are the “ baekbne
of the Industry.” and which \
finance the loss-makers. -" "*

In February last year the v
industry was- thrown Into eris .
when the. miners opposed NC:
plans to shut 21 pits, with the .
loss of 13,000 jobs. The 21.hftri f
lost £74m In 1980/81 and
produced poly 4.2 5m tonnes of
coal between them of the
national output of 124m tonnes.,:
Ten of the 21 on the .original
list have now been dosed and . ..
two others— not on the list —
have afco been shut
And accnmtng closures iff .
entire pits continue at the sane
rate as for the last decade, over
25 mines and up to 25,060 jobs,
could go between now and 1985
when the crucial Government
grants are due to run out

Sue Cameron

stations by nuclear ones would
severely reduce miners’
strength — even if, as the NCB
has in mind, coal will' come' to
replace oil as a feedstock to
massive liquefaction plants by
the end of the century.

.# . Opposes coal imports. The
use of relatively cheap coal
from Poland, Australia, the U.S.
and elsewhere would,’ if ex-
tended, provide the Central
Electricity Generating Board
with a lever of its own against
NUM industrial action.

• Opposes pit closures except
on grounds of complete ex-

haustion. To accept the Board's
criterion' of closure because of
unprofitabllity would deprive
him of some of the areas of
his greatest industrial strength.

Yet, for all his talent and all
the cards -he holds, he feces
great problems.

First, the centre and right-
wingers of his own executives —
men like Trevor Bell, secretary
of the white-collar branch Cosa,
Ray Ghadbum, secretary of the
Nottinghamshire Miners, and
Sid Vincent, secretary of the
Lancashire miners — may be
demoralised, but can still gather

a majority on some issues
against the left. They are, tike
all area leaderships, fiercely
jealous of their independence:
the NUM -is still a federal union
with a relatively weak, central
structure.

A good case tin point is pro-
vided by the present situation
in Leicestershire area. There,
the area secretary. Jack Jones,
has accepted that his entire
six-pit -coalfield will close in
around 10 years. In talks with
the NCB, he has agreed to- run
down the South Leicester pit
through redundancies and

transfers over the next twfo
years, and tio begin the run 1
down of two others.

the side of the Board. Pits like; -
SnowdoWn produce -coal
high 1 quality, in its case— foot
the price is nigh. The- Kent ..
coaJfieJd loses £15m a year, with
little prospect of improvement’
Snowdown itself Js: Josteg-
£10,000 a man’ a year.

.The Board,, whidv > often,
occupies a. rather uncomfort-
able posttion between the NUM ■■■■'.
and the Government, can argue
against imports and "for 1 sofc- .-
sidles only so far: it -must then ‘
be seen to be making itself as -
efficient as possible,' . which .-’
means more, capital intensive-
super pits and fewer massive '
loss makers. .If Mr -

arguments can wur over con- >
Servationists ami ’ the- growing
anti-nuclear lobby, the- Board.

— ' and behind it !the Govetor
inent -r^ -is m tone .wltbjttie ’
citizen as taxpayer. . .

Finally, there fis. . x-tte" '
imponderable. of : the v .NUM " 1
membership. Even tiMnuffitaat'" /
miners of Kent {see :beflw) - ate •
not Vbolly~ united .beWnd^“anT , ; ;
area-wide strike bn June . if; l...
Older men ' are tempted *fi|'
redundancy payments' of upsbv
£10,000 and by pensions of tij?*'-
to 90 per 'cent of e#m
Younger miners,
ea.rti.rngs. from bonuses' - '

increasing obKgatkms, appear^ -
less ready to give Scai^H^jinV/
automatic . mandate for: , mili-
tancy: soon' after 'tfcey oeeiva i
vhelmih^y ^tectfed
mners refused to fo Shwr.'Mtl f
aB to reject the Boa«rs p^>l^

. fear. -. s.v.*T ’

ScargiB can and does erga^
tat right-wing leadership: ha& * -
arflised and d«norafiae^Oa*fiiIV V
mreworkers,

afoiescehce in Tundowit:?- b-Htfi - f

He will see his membership
decline from 4,500 to 2,500
over die next few years: the
remainder will largely be trans-
ferred to the new, super pit in
the Vale of Belvo-ir. due to
open by the' beginning of the
1990s. Jones and the Leicester-
shire miners are not fighting:
it is doubtful ;if they would
respond to Scargfll telling them
to.

Second, economic logic is on

wFose his p^nlarttyiand 'iraK ; ;
gratly. increase the soze ef itiiniA
mtQdy NUM papec,Jhe
to campaign against . doeores *
anrtoblqsa. • ’

Ttnorrows executive. -
as efi as discusring Industrial:.
acth,; decide on hoiding^- -■
speql delegate eonferencieLottj -
job «ses— some 12,000 in'ibi?''; '
pa^nax. Even jn tiie dep^r:''
of arecefisioD, the :-NUK--cacEMT
disersc -great weils of-. mBfe-;
temyand great hostility to - -

prese Gowmunentt.-; ; -g-

HOW COLLINS THE ORATOR WON THE DAY IN KENT

7r-l' if'

Pay policy back
in the ring

YESTERDAYS 24-hour strike
in the National Health Service,
complete with police and troops
on stand-by, may arouse fears
that what happened to Mr
Heath in 3973-74 and Mr
Callaghan in 1978-79 could yet
befall Mrs Thatcher before the
next election — unemployment
figures notwithstanding. Would
Britain be any less prone to
industrial strife under the SDP.
whose draft economic strategy
was unveiled for discussion
earlier this week?

Where pay policy -is con-
cerned there is no shortage of
potential voters ready and will-
ing to submit to the pain of a
new idea. Most people agree
that the present system of pay
determination is unsatisfactory-
In the public sector Civil
Service pay relativities are
established according to the
degree of disruptive clout.
Nationalised industry employees
thrive according to, the extent
of their monopoly bargaining
power and the ability of their
empioyer to pass on inflated
wage costs to the luckless con-
sumer.

The private sector, more
vulnerable to market forces,
suffers more violent swings in
levels of pay and employment.

grounds that -it simply creates
pay anomalies and compresses
differentials; mounting resent-
ment among workers is alleged
to make the policy unworkable
except in the short term. Why,
then, place faith in the SDFs
proposals? -

Arbitration

Decentralised

The SDP*5 answer is to dress
up several old ideas in a new
guise. It wants an economic
policy tSiat concentrates not on
tight fiscal and monetary policy
but on the objectives of output,
employment and prices. And
to overcome the inflationary
impact of an employment-
boosting expansionary budget
policy, the SDP makes a mag-
nificent promise to square all
circles via an incomes policy
that is pennon ent yet sensitive
to market forces: part-
compulsory, but none the less
fair.

Three possible approaches are
offered. One is the re-establish-
ment of a prices and incomes
board. Another is a decentral-
ised policy based on arbitration
and tax incentives. The third
tack, for which the SDP's
enthusiasm is more muted,
would involve a combination of
a firm public sector pay policy
and West German style “ con-
certs lion '' — whereby govern-
ment, management and unions
wouhf seek ro agree on a broad
band within which private
sector pay bargaining would
take place.

Incomes poliev has been
criticised in the’ past nn the

It is hard to see a prices and
incomes board doing the job
without a fair wind from
management and unions, or
more effective sanctions for pay
policy than successive govern-
ments have been able to find.
Nor is the -third, minimalist
solution, likely to commend it-
self very strongly to SDP sup-
porters smee it boils dbwn to a
gamble on continuing restraint
by employees and their unions.

Which leaves the decentral-
ised approach based on arbitra-
tion and an inflation tax. The
SDP wants an independent
national arbitration body which
would set a national pay norm
and apply -the same criteria to
all disputes. The aim would be
not merely to avoid disputes and
achieve settlements acceptable
to employers and workers, but
to ensure settlements, that pro-
mote output and employment. It
would also anm to follow market
forces by, for example. -accept-
ing the case for pay settlements
above the norm for workers
whose 'skills were in short
supply. A tax penalty would
come in to play when pay limits
were breached.

Small steps

It is hard to see how, in the
public sector, this would help
deal with Arthur Sc argil 1. In
the private sector it raises a
new set of labour market dis-
tortions by, for example, poten-
tially penalising those who
want to raise wages to attract
more labour to which the SDP
replies that the game is worth
the candle if -we are to have
a return to non-inflationary
growth. A more fundamental
doubt, however, is ■ whether
such a system is not too bureau-
cratic to be workable.

There can he no magic solu-
tion over pay. The most that
governments can hope to
achieve is a succession of small
steps which help erode
monopoly bargaining power in
the attempt to get back to a
decentralised system of five
collective bargaining. The merit
of the SDP’s draft paper is that
'It makes no attempt to skirt
the awkward fences, despit® the
unanswered -questions.- It should
not be dismissed lightly.

THE ability to move men by
argument, will and sheer pre r -
sence Is less rare in the labour
movement than commonly
supposed, but is uncommon '
enough to be notable. A most
...notable, instance of .the jurt
took place a week' ago 'on a
football field in Kent

The Kent mineworkers, now
reduced to 3,060 working the
three pits of Betteshanger, .
Snowdown and Tilmanstpne.
have a history of militancy.
Betteshanger. was the only .pit
to strike during the last war:
the gtrike leaders' were jailed
but soon released. The area’s "
manpower was largely drawn
from left-wingers blacklisted
In their own areas — Scotland.
South Wales, the North East
— and employed In Kent be-
cause local labour would not
work the field's tortured, nar-

row seams and hot tunnels.

• • Last Wednesday, around
. 1,000 of these men gathered
under .a marquee outride the
village of- -Aylesham,- whose
economy wholly depends on
the nearby Snowdown -pit.
They heard the area Presi-
dent, Mr John Moyle, report
on futile negotiations with the
NCB: how the Board wished
to make redundant ot trans-
fer up to 600 of the pttV800-
. • odd : workforce, keeping 200.

for a .three-year driveage to a
' new face which might — or
might not — be profitable. The
programme would cost £3m —
a lot to risk for a possible
nothing, less when set against
a current annual loss' of £9m.

The miners, standing or
sprawling on the grass, list-
ened silently. Then Moyle
read the resolution adopted
by the area executive to

counter the Board’s proposal:
strike from June 19, widen
the action; if possible . . .
and no miner to take redan- -
. dancy pay-off. on pain of loss,
of union benefits.

Then the field became a
.tumult .of angry shouts. “ No!
Not" “That’s omr money.’*
“We don’t want that” One
man beside himself with
rage, rushed to the stage on
which members of the execu-
tive sajL shaking his fist under
their hoses. “ Don’t you tell
us what to do! We ten - you
what to do! ”

Moyle ' ploughed through
the resolution and sat. Jack
Collins, the area general sec-
retary rose into a barracking
of hostility. Collins Is a tan,
strongly bunt, handsome man:
he might 'have been a model
for the Leading Worker in a
Social Realist painting of the

1930s. Bnt as he began to
speak, his low, burred voice
was half- drowned.

He gestured to the TV
cameras on the side of the
stage." “Everybody Will see
yon tonight on television and
Derek Ezra will know he can
do the same to you as
Michael Edwardes did to BL.
We should not want to be
involved as miners shouting
and - catcalling each other."
The shouting and catcalling
abated a little; as Collins
tried to sbame the andience.
.' The speech which followed
was largely extempore; - an
amalgam - of appeals for
loyalty (“ loyalty is two-way:
it Is between us all"); a de-
fence of his record (“I will
never ever sell out the
miners: my record is dear");
and most iff all, an appeal to
tibe morality of a mining com-

munity (“Hone of us have
the right to sell our jobs— -
it Is a completely immoral at-
titude to adopt. . And what
cannot be justified morallj
cannot - be justified- at alL
- There will be -many young-
sters in this village who will
want to look, want- to . ex-/
amine the men who have sold
their jobs”).

-The speech unrolled: . Col-
lins was how .getting more
- cheers than boos. On a peak
■ of rhetoric, he threw the
motion to. the meeting: “All
. .those In ■ favour!” — perhaps
400-500 hands. “Against”—

. perhaps a' hundred. Meeting
closed. The opposition,
caught on the hop, began to
cry for a promised debate —
too late.

So they brought home the
vote in the Kent area. It was
not a model' exercise of 'the

demote process: . a debate;^,
was praised, and none caihftC- -i
After ,Te meeting!* elds ore* .

-in a s^ isoene with d.ear f; 0
eontemnpxy parallels^ ah
elderryljplish W&M -.

before e- stage -nhouting at
Collins: You got what you :■)’ .
wanted, Jpek. . . What you >"■:
wanted. «f what We wanted.”

, Yet it was impossible to . 13 -
determrn^hat they, wanted. •’
Some, eieciaHy the : older ^ -
men, nnd^tedly did want to;
take red ujan cy : money - and'
retire ear.x others — • the:
younger eh — .. perhaps!; -
needed soe-. heart put fu '
them for oight Their test
—for the niets, Collins and (-■
the exeeutii +- win come if iV.
the board d$ nof back ddwn^. /
and when hey must r ,:
Collins ekhtfed them to do, - .
“ stand like ion, stand tike [
miners.” ' ' : J . .

fie Cen
[ansed i:

v- -

Men & Matters

Adrift Tn Athens

Whatever happened to those .
golden Greeks who once be-
strode , the world's shipping
markets and gossip columns?

Gone, gone, gone — perhaps
never to return. That is the
official word from Athens where
rbe shipping industry’s armadas
have gathered for the biennial
Posidonia Exhibition. - : --

“ Sad to say, the time of the
golden Greeks is past,” . said
Aristomenis Karageorgis, presi-
dent . of the Union of Greek
Shipowners. The world .ship;
ping slump has effectively taken'
care of them, though there is no ■'
shortage of tanned owners and
their wives swanning around the
sweaty streets <of Athens and
the nearby port of Piraeus.

In these harsh times of reces-
sion and rock-bottom freight,
rates, money is no longer to be
freely plucked from the hands
of the world’s importers and ex-
porters. Hard work and fore-
sight are what it takes just to
survive nowadays, said Kara-
georgis. And your average
Greek shipowner, it seems, is
man. who. likes to keep his
head well below the sights off
the Press gangs.

The industry certainly still
offers opportunities for profit,
said Karageorgis, looking, for

rare and brief moment on the
brighter side. “But It can no
longer, if indeed it ever could,
make millionaires overnight**

boas that mean
teE wo n't bcaJble
Ct rta d between
thera 7

/

equipped for the job. Dolphin
lifted 700 miles of cable before
it ran into difficulties.

There were no problems in
retrieving the steel and cop-
per. But the guttapercha ■ had
absorbed impurities like salt
and could not be .properly
treated.

-- Since the Malaysians have
stopped making the substance,
Turtou reports'' that some in-
terest is still being shown in
the possibilities ' of this 'new
source of supply- “Though not
1 many people actually come
along and plant fot cheques on
your desk."

He expects the results of
analysis from the U.S. in about
a week wbi'ch should show if
ft is technically feasible for
guttapercha, and perhaps Dol-
phin, to bounce back..

The idea , of the National In-
stitute for Higher Education,
the driving force behind the
scheme, is that private industry
will contribute to further de-
velopments on the grounds, as
Guinness director Ernest Bode II
says, that technological educa-
tion is an investment
The micro-Apples will go Into
the country's regional adult
education centres where it is
hoped they will excite more
interest When the machines
are not in use with the TV pro-
grammes, the centres can play
with them themselves.

Camping in

Overstretched

Bare essentials

Poland’s consumers’ association,
which was set up last year, has

not only survived the rigours

of martial law but bas now even
and “she" would got permission to produce- a.
weekly newspaper.

The first issue of “Veto.” as
it Is called, con tains a wry com-
ment on the chronic shortages
in the shops. Readers are in-
vited to enter a competition to
guess tile date at which a pic-
ture rinowang a shop wUJh its
shelves packed wttilh goods was
token.

First prize is a bar of soap.

mg to “ her
spoil the design and— -wait for
it — the Institute did not feel it
was worth ordering any certi-
ficates specially for female
members.

Dim outlook

Economist Rowona Mills tells
me of. a slightly sad incident
which shows a lack of faith in
the future for women in the
packaging industry. She was.
lately made a fellow of the Insti" “floated

■What - is . gungy brown, and
stock-piled in Blllingham? Right
first time — guttapercha, which,
as everybody knows, is the rub- ...
ber-based derivative still used IriSfl 3V6S
.in making some golf balls.

■ The stuff at the moment is
sticking to the hands of Richard
Turtou, of accountants Spicer
and Pegler. the receiver of Dol-
phin Cable, a £1.7m company
on Teesside some 18

Guinness and Apple is not- a
new diet fad — but a combine- .
tion that is going to launch an ■ those who feel

tute of Packaging, the first of
her sex to be so' appointed. At
the AGM, the Instifut's secre-
tary asked her if she minded

having M him " and “ he " on the
decorative certificate. (She did.)

months ago to recover ont-of-
service telecommunication
cables from the sea-bed.

The idea was to extract and
sell the steel, copper and gutta-
percha from the cables.. And

put apparently h was -felt that -wklr-what-Turton claims is the
any move to change the letter- only vessel in the world

Irish version of the Open Uni-^
versiiy. . ,

The Dublin brewer is putting,
up LE90.000 and Apple- -Com-
puter is giving 75' micro-
computer systems worth. around
I£2 00,000. The money and the
machines will go towards two
pilot programmes on basic com-
puting and agriculture to be
transmitted by RTE, the
nation’s TV organisation.

The long taboo subject in the
Communist countries of homo-
sexuality has been broken by
the East German Communist
Youth Organisation. Its news-
paper. Junge Welt, has replied
to a letter from a young woman
who asks whether outside help
should not he given to get the
two homosexuals in her “work
collective ” to have u normal
sexual relations.”

"Dear Astrid." the news-
paper’s female personal prob-
lems editor says in an unusual
flight of liberality, “ I don’t
think homosexuals want' such
help dot would it be necessary.
What should be changed' is the
way of thinking of people who ’
cannot understand this”.

She notes that while under
capitalism homosexuality often
led to prostitution because of.
widespread unemployment,
“ our humanistic convictions
require us to respect and accept
fferentiy. Our

*•/ -'

laws grant homosexuals com-
plete equality and there is no
basis in our society to ; discri-
minate against homosexuals.”

In fact, homosexuals in JS asi
Germany are unable to hold
down most Government jobs or
to serve in a higher rank in ,
the armed forces.

Observer

J n Australia, people know us simpiyJ .
the National. And know us extremely •
we've been a major force in Australian
banking for well over a century; With 800 .

branches throughout this vast country.

But international would be a mdre ac * : : -
description of our standing. We're in the i- : v
business of banking on a worldwide scale,**’
you II find our presence spreads far and wit •:
We have offices in London, New York •

Lew Angeles, Tokyo, Singapore, Hong' Kor¥
an , d ^5 karta ' And in Papua New Guinea btr -
subsidiary, the Bank of South Pacific,is at t*
your service.. '. r e

.4

. . On Australian mattere in particular' weV
t ? c s ns 4*- We welcome enquiries ))-
on Australian business, trade, investment an v
immigration. . -v-

From wherever fn the world you may be;

The National Bank

of Australasia Limited

ChiefLondon<ffice;MTotei^«Yard,LondonECZR7A>

Headoffice: f:

■>

I

Financial Tithes Wednesday Janet 9 ,1982

FINANCIAL TIMES SURVEY

Wednesday June 9 , 1982

l! Sh‘ ' f“ s C>J

'*** =. -f

'‘if - -* T i

i;.-

- l - 1 ■ Hl B n*

* :-«fcr ^
, . •'■’HcV

■; - l ^ri

TV.. . : V..1.-

. >

• -..? -■ f e

•ff . . S?1

-r. •<

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•••• c : *w*t
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■

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- - r ‘ u '~p^.

•_ - b

St

ce

Like most banking communities in the industrialised world the West Germans have experienced
two difficult years of recession coupled with widely fluctuating interest rates. There are signs of stability emerging
on several fronts but the domestic prospect is for a period of growing competition in most sectors

Greater awareness
of risk element

By Stewart Fleming In Frankfurt

THE WEST GERMAN banking
and financial sectors have been
shaken to the core by the
events of the past two years
which have forced German
financiers to reassess or dis-
card many of the asasnptions
on which they conducted their
business in the previous
decade.

In international banking
markets developments first in
Iran and Afghanistan, then in
Poland and now in^the Falkland
Islands have . reinforced the
unease of . German bankers
about the political and financial '
risks in international lending.
The Polish crisis above all has
driven the point home, for the
German banks are the most
heavily committed, to Poland as
weU as to many of the other
East Bloc countries.

DomesticaHy too. however,
the financial markets have been
labouring under an awareness
of increased risk as the
realisation has spread that the
eponomy and the financial
* ' ilsitions of the Federal
nblic are bound up inex>
ably with increarfngiy
latile international financial
iarkets.

The past two years have
— ided the most . dramatic
onstration of this inter-
lationstup because, the
latility of intemationai fin an-
a! markets has coincided
^.th a period of economic
\fcakness in West Germany
teX. Over -fids period, as
e German current- account
ed into a DM 305m deficit

in v 1980, German Inflation
soared to a year-on-year peak
of 6.7 per cent in October last,
and : the D-Mark plunged to
three and four-year lows
against the dollar, the Bundes-
bank. .(the central bank) has
found itself forced to defend
the international- value of the
German currency as well as
its domestic value.

Unexpected

. Its choice of priorities
resulted In another unexpected
upward surge in West German
interest rates be ginning in
February of last year. This
took .long-term capital rates to
post-war record highs of over
Hi per cent and helped to
plunge the domestic economy
into a recession (from winch
lit has yet to .emerge) in the
coarse of. which unemployment
rad the bankruptcy rate have
also hit record levels for the
Federal Republic.

It Is some comfort that the
German, current account is now
headed for a surplus in 1982
and that inflation is falling
towards the 4 per cent level.
The Bundesbank has been able
to relax its . monetary policy
and restore a Lombard rate of
9 per cent instead of the
“special” Lombard rate of
12 per emit which ruled during
most of 1981. In Ihe process
the threat of new losses on
long-term bonds has been tians-
fomaod into healthy profits and
the banking sector, which is
crucial to West • Germany’s

• economic success has tor the
most part been restored to
satisfactory profitability.

With capital market rates
back to between 81 and 9 per
cent ajad the currency appar-
ently Stable around DM 2.30 to
the dollar, the authorities are
*tole to boast of same “ de-
coupling," from U.S. interest
rates. -But the fact that the
economy is still locked in re-
cession. that capital spending is
still falling— probably at a
faster rate than test year— and
that there appears to be no
more room to ease monetary
policy further in the face of
these problems underlines the
extent to 'which even under to-
day’s - relatively favourable
circramst’ances tor the external
value of the D-Mark, domestic
ecoonmic affairs are still
heavily influenced by Inter-
national developments. This
interdependence has been —
and remains — one of the fac-
tors forcing bankers in par-
ticular to adopt new business
strategies at home and abroad.

Thus at home bankers
around the country are vowing
that never again will they specu-
late to ffie extent they did in
the mid-1970s on the swings in
the domestic interest rate cycle.
Many banks then.- partly under
the pressure of competition
from the fast growing Landes-
banks but also in pursuit of
size, took on billions of marks
of fixed interest long-term
loans, hoping to finance them
later on short-term rates at
widening spreads as interest
rates felL Instead rates rose to
unexpected peaks, with short
rates between 1979 and the pre-
sent consistently higher than
long rates, forcing those banks
which bad taken the plunge to
accept losses.

In the case of Commerzbank
the mismatched portfolio was
over DM 205m for Dresdner
Bank and Westdeutsche Lands-

SPECIAL LOMBARD RATE
AVER AGE BOND YIELDS

bank over DM lObn. The burden
may have been less tor other
banks, including some of the
larger savings banks, but the
shock of just how sadly wrong
experienced banking executives
can go has left its mark.

It is not just domestically,
however, that some of the com-
fortable assumptions on which
the . German banks .have
operated have been overturned.

Of all the world’s hanks, the
West German institutions have
been the most heavily com-
mitted in Eastern Europe. In
part this commitment reflected
the willingness, even enthu-
siasm, of some banks to support
the policies tel detente through
financing trade. Since this
trade also benefited their
German customers there was
even more reason to undertake
the business. And many of the
banks made their loans on the
assumption that a Soviet
“umbrella" would ensure that
East Bloc borrowers always
paid their debts.

That umbrella has been
blown away by the Polish crisis.
Events in Poland, before then
events in Iran- and now the
Falkland^ crisis have, combined
to make German bankers much
more sceptical of their country’s
lending policies. They remain
conscious of their vital role as
financiers of German exports
but are convinced that to fulfil
this role and take the risks
associated with it more profit
and a thicker equity capital
base are essential.

- It is increasingly the role of
profit which is taking the centre
stage in the strategies of
German bankers. Alongside
the shocks of the past two years
a major reason for this is the
changes in German banking
law which are planned tor asses-
sing the capital adequacy of the

hnnlrc

The Banking Law at present
puts a limit of 18 times capital
on the volume of loans which
the basks can make. For a
dedade it has been a limit more

1982 *

honoured in the breach than
in the observance. Through
their Luxembourg subsidiaries
but also through domestic sub-
sidiaries which are not consoli-
dated, the German banks have
been able to avoid this restric-
tion completely. They have
also been able to avoid it by
lending to the Government and
local authorities — lending
which does not have to be
backed by equity.

Foundations

That loophole will remain.
But already the Bundesbank
and the Federal Banking Office
have, through an informal
agreement, begun to lay the
foundations for a fundamental
reform of German banking law
which will force the hanks to
draw up accounts on a
nationally and internationally
consolidated basis to which the
traditional banking laws will be
applied.

The Landesbanks had origi-

Structure: Where the strengths lie

n

Commercial banks: Recovery in earnings

n

Landesbanks: Vulnerability exposed

m;

Bundesbank: Guardian of the currency

m

' Savings banks: Aggressive moves

wr

Co-operative banks: Countrywide roots

IVi

Risk capital: Stock markets and equities

V

International business: World presence iV

Payments systems: Search for approach

VI

Law reform: Lobbyine ^recedes the dav 1VXS

Profile: August von Finck

vn

Profile: Wolfgang Starke

m

Certificates of indebtedness

VUI

World image: Euromarkets profile vni

nally stayed outside this
“gentleman's agreement” be-
cause of their ties with the
savings banks, which are con-
ducting a separate campaign for
special treatment under any
banking law reform. But they
too now are to supply the bank-
ing authorities with the
information about their consoli-
dated balance sheets which will
eventually become the basis for
the reform of the banking law.
When that reform win take
place, however, remains un-
clear.

Irrespective of the precise
timing of legislative action,
however, the banks are dear
that .in the future they w£H
have to bade their business
with more capital. For most of
them that means that they will
have to generate more capital
internally, which in turn means
ensuring that they concentrate
their lending on those markets
where profits are best rad try
to ensure that those assets
which are already on their

books are employed most
efficiently.

It is this consciousness of the
importance of profits as a source
of equity capital which helps
to explain the increasing
restraint of the German hanks
in lending at low margins in
the international markets. It
explains too why the German
h anks are putting increasing
emphasis on services as a source
of income. Fee-earning busi-
ness, as opposed to lending,
does not have to be backed by
legally established and binding
capital ratios.

In their domestic business, as
universal banks, the big
German commercial banks in
particular are very strongly
placed as commission earners.
One of the challenges of the
1980s wiH be to see whether the
big German banks can expand
from this domestic base and
repeat in their fee-earning
business the success they had as
lenders in international markets
in the past decade.

For West Germany

think BV

YoiTII find BV in business cen-
tres all over West Germany.
BV’s broad range of financial
services is backed up by a solid
domestic and global network
to put us near our clients any-
where in the world, Bayerische
Vereinsbank is one of Ger-
many’s largest banks with con-
solidated assets of approx.
DM 1 00 biliion (yearend 1 981).
We have a two-century

•IDDRF

MUNCUEN

full range of universal bank
services including retail,
wholesale and securities
operations, not forgetting our

gives us added flexibility

FRANKFURT

v/Iesbaibi

wen We operate from a broad base

|f| of 41 0 outlets complemented
by branches, representative
offices, equity holdings and
correspondents in major inter-
national centres such as New
York, London, Luxembourg
and Tokyo. Why not keep our
kind of company?

fjlV' Bayerische Vereinsbank AG (Union Bank of Bavaria)
London Branch

xjg'y 40, Moorgate, London EC2R 6 EL

Telephone (01) 628 9066, Telex 889 1 96 bvfg

11 mat

i

MA/N2

BONN

STUTOART

BAYERISCHE

VEREINSBANK

AKTTENGESELLSGHAFT

Union Bank of Bavaria (Bayerische Vereinsbank AG)

New York Branch

430 , Park Avenue, New York, N.Y. 10022
Telephone (212) 758-4664, Telex 62850 ubbuw

Bayerische Vereinsbank International S.A.

38 - 40 , Avenue Monterey, Botte Postale 481 , Luxembourg
Telephone 42861 1 , Telex 2654 bvilu

Bayerische Vereinsbank AG
Head Office — International Division
Kardinal-Faulhaber-Strasse 1, D-8000 MQnchen 1
Telephone (089) 2132-1, Teiex529921 bvmd
SWIFT: BVBEDE MM

West Gennany’s banking system is a complex of commercial, private,
co-operative and public institutions. Stewart Fleming reports ori; this
and the following two pages on events of the past year and the shifts
. taking place in the competitive balance.

Where the

. .

'V*'’ .AS’

, *r <■ • "• . • '

• v> -A »

BfG : Is counting on technology to provide even
more in-depth banking services in the Eighties.

Can modem technology improve a bank? Not every inno-
vation in computer engineering andinthe electronicmediais
helpful. But ail inall,we believe that technologywiilsubstan-
-iially enhance the service given to our customers.

That is why we are the first nation-wide bank in Germany
to go on-line. Jinking together our entire branch network.
Moreover, we’re testing full-scale the ‘Videotext” system in

BfG:Group Consolidated Balance Sh

eetFi cures

3981

(in billion DM)

Tolal Assets

57351

Customer's Deposits

25.066

Loans to Customers Outstanding

53.464

Capital and Resetves

1.682

Berlin and in Diisseldprf.

We’re taking advantage of these latest advances to give
you the best possible service available —because when rou-
tine operationsarehandledwithgreater speedandpredsiori,
we have more time to advise you personally.

As one of the leading h anks represented in all of Gei>
many’s larger cities and with numerous offices abroad, it is
our aim to be your responsive and reliable partner in the
decadeahead. ' . • ^

aa«e»je

BfGBankfur Gemeinwirtschaft. Aktiragesdlschaft,
Theaterplatz 2, Postfach 2244, 6000 Frankfurt am Main!

BfGiLondon. S3. Cannon Street, Bucklersbury House, .
London EC4N SHE.

ALTHOUGH THE West German
banking industry . is widely
recognised as one of the most
competitive in die world, with
only Switzerland boasting a
denser hankbranch network per
head of the- population, the
German, banking, groups have
traditionally each had their
special strengths.

The commercial banks, for
example,, have historically been
the dominant lenders to the
corporate sector. The Landes-
bajofes, partly because directly
and .indirectly their owners are
local authorities and. states, have
been .the leading force in lend-
ing to the pubhc sector. The
savings and the co-operative
banks, with ihear' dense network
of branches and local ties, have
dominated • the retail banking
market.

Increasingly in recent years,
however, the search for new
lending opportunities * and
profitable' ' expansion - has
brought the various banking
groups into more intense com-
petition, although not always
with the results originally in-
tended. Thus, even today some
of the big commercial banks
are regretting deeply their
decisions to chase aggressively
after the market for medium
and longer term fixed interest
loans for central and local
government

. The impact which these tradi-
tional strengths can have oh
the profits performance of the
i individual banking groups has
been heavily underlined during
the past two years of soaring
interest rates. Thus, while
throughout 1980 and during
much- of 1961. the big. commer-
cial banks (with one or two
notable exceptions •- such 'as
Deutsche Bank and Bayerische
Vere ins bank) were struggling
to maintain profitability in the
face of sharp increases in
interest rates, weakening cor-
porate credit demand at home
and narrowing profit margins

THE SYSTEM AND ITS SECTORS

Business,
volume ‘

Banking sector ' - (DM bn) of banks of offices-; . ; persons sector

Commercial 576 249 6,155 ' 277 . 54

of which big banks* 226 .6 3421 • 116 .'■...■.17 -

Tanilp^biinln; , , , 416 12 ' , 324 1 142 • - 96 • •

Savings banks 555 598 17,571 318 • 61

Co-operatives 388 ■ 2^78 19,789 . 202 : -12..

Mortgage banks 358 38 ' • ■ 69; 200- . 181 ‘

Branches of foreign banks 52 56 . 101 - ’ 19.

* Big banks are Deutsche Bank, Dresdner Bank, Commerzbank and their West

■ t Negligible. * ‘

Domestic lending

--- . (DM bn)—

Tocom-Tothe

Number Number ’-pasties and publi c

of banks of offices persons sector
248 6455 277 . 54

.6 3421 U6

12 , 324 ^ 142 - 98-

598 17,571 ' ‘ 318 , 61

2478 * -19,789 202 -12. ..

38 69; 200 . 101

56 -101 ’ 19 t-

Domesticllabilitics
(DM bn)~ -
* ; •. Sightof which
andtime “savings
deposits, deposits
y : 276 : - r r 76
: 34I\ '-A6- ■ :

450 “ 255 >

■ 236^7^ia C?v

:1;V

Berlin subsidiaries.-

abroad! In " 1981 the savings
banks and the co-operative
banks had highly -profitable
years.

The explantion of the profit-
ability of these two groups lies
in part in their lack of any sub-
stantial international activities
— although there are exceptions
to this general rule particularly
in the case of one or two of the
larger savings banks. In addi-
tion. however, both banking
groups profited from their
strong position in the retail
banking market

As consumer credit interest
rates rose to between 16 and
19 per cent in the course of the
year the fact that both the
savings and co-operative banks
have the dominant position in
the market for cheap sight and
savings deposits, costing from
almost nothing to between
5 and 7 per cent, meant that
they were able to enjoy steadily
widening interest margins.

In contrast the Landed? anks,
with virtually no retail busi-
ness and heavily dependent on
wholesale funds to finance their
lending and their bond port-
folios. continued to suffer from
the high cost of money and the
persistently inverse interest

rate structure — at . least until
interest rates began tp fafl late
in the year. . ' !■ j • i

The extent to whiejj tiie
various banking groups are
strongly entrenched, in dif-
ferent sectors of the market
should not be . exaggerated - how-
ever. The.: growing .market

share of the co-operative bank-
ing sector presents .a major
competitive challenge to the
other banking groups, particu-
larly in-tho consumer market
Adi the major banking groups
are these days putting . great
emphasis oh' trying to expand
their business with the medium
sized company sector or
MxtteXstand, a segment of the
market where .the banks see
exceptional, growth opportuni-
ties not only in terms of in-
creased lending but also of pro-
viding financial advice and other
banking services.

In the retail sector too the
expansion of “electronic bank-
ing”' and the increased attrac-
tion of the private customer as
a source of deposits at a time
of high interest rates are re-
quiring the banks to pay in-
creased attention to this market
in . order to defend market
shares and realise cost sayings.

- Indeed, with the big eommezu
cial banks , taking a much mojc'
cautious '. view - of international
lending^particularly to ccrdntrieg '

. for balance of payments' finan-
cing, .with consumer - tanking!
entering. a: period of Tapidtech--;
nical change and with; the prog,
,pect of a. major .surge. in , <aefe, :
.demand when the . Gennaii ! •
economy finally begins to -ijpngf -> •
itself out of recession, -ihereare
grounds for believing that the :
domestic banking market-“V3i
be the focus of- much’moi* ;
attention and -competition iirtbe'
ebrly 1980s. '. -i j ■

-The tables which accfthpOT*.
succeeding articles on vSe
various r -sectors . need hfriba;-
treated with some care .a& ffcn ?
guides to trends. Shace - German
banks do not. report on a -'-otk-'
solicited : basis Re activities jfaf
Subsidiaries abroad . only
brandies will be induded-i-^and-
this at a time when both C6&
mercial and Landesbanks 7 ajfe
increasingly •;* serving - thefe
domestic corporate - ‘enstomeq
with loans ..from! .the. Euiv'
markets. Thus both;. the ^calfe of
commercial bank lending
the importance of -the .forejgt
hank .sector to . the- German
economy may be understated. £

■ \ -sf •••■"• 1 ^ •• '■

- - - • > O'-- ■ -yi ; ‘Sc " •

BfG ; Bank fiir Gemeinwirtschaft

■ V;..

recovery m earnings

Kredttanstatt

f wr Wiederaufbau

Highlights from the Balance Sheet as at December 31,1981

Assets

DM million - Liabilities

DM million

Cash Resetves and Balances
with Banks

Securities

Loans ’

Participations_

Real estates and buildings •

Unpaid Capital .

Loans on a trust basis

Other Assets

2252

224

47,609

153

‘ 22

850

9,672

561

Banking Liabilities .
Promissory notes

Bonds

Provisions

Capital

Reserves

Loans on a trust basis

Other Liabilities ■

44210

1,100

2,713

134

1,000

1324

9,672

1,190

AFTER TWO years during
which the German commercial*
banks have been seeing their
profits melt away and some of
the major banks forced to cut—
or. as in the case of Commerz-
bank, forgo— their dividends,
the final months of 1981 brought
not just relief but a dramatic
recovery in earnings which
has carried on into this year.-

Half-way through last year
such an outcome seemed im-
probable. With the surge in
interest rates following the
Bundesbank's drastic steps to
defend the D-mark in February,
and with a shadow hanging
over much of the banks’ inter-
national operations, there were
fears that 1981 was going to
prove as bad as. or possibly
even worse than 1980 in terms
of earnings.

i - - ■ s

(per cent)

Commercial Banks — Domestic Market Shares

Loans to companies and self-employed
Loans to private individu als
Housing loans

t Affected by change in statistical basis.

1976 1977 1978 1979;.; 1980 1981.^’

33.6 334) 32,2 31.8

28-9 27-2 26.6 25.7 23J

94 11.0 1L9 13L2y 132 ‘ Vlft gjS

Source: Savings Banks Association^ ■

Total Assets

61,343 Total Liabilities

61,343

We shall be pleased to send you on request a copy of the Annual Report for 1981 together with

a summary of KreditanstaJtfs activitie&

Kreditanstalt
fur Wiederaufbau

PaimengartenstE 5-9, Postfach HTt41
I>6000 Frankfurt am Main H
TeU61OT4310,Telex:4113S2

High capital market Interest
rates threatened the commer-
cial banks with even bigger
write-offs on their securities
portfolios than in 1981. More-
over. although the banks had
reacted . quickly by hoisting
interest rates to their customers
sharply folkwing tfce.Fetanary
tightening of monetary policy,
credit demand was. weakening
and funding costs were up
sharply too. At best it seemed
the year might briag some
modest widening of lending
i margins which would help off-
set the other problems.

In October, however, the pic-
ture began to brighten remark-
ably. In response to the startling
recovery in the German current-
account and the strengthening
of the D-mark against not just
other European, currencies hut
slowly too against the dollar,
the Bundesbank began to ease
short-term interest rotes, which
pulled long-term rates down in
their wake.

, At the same time the leisurely
pace at which they reduced
their lending rates to their cus-
tomers — a policy which brought
some veiled rebukes from the
Bundesbank— meant that lend-
ing margins began to improve
very substantially Meanwhile,
the income the banks were earn-
ing from advising and trading
for their customers were boost-
ing their commission earnings..

Commercial banks

Not all banks were, of
course, profiting from these
favourable trends to an equal
extent. Commerzbank, still
burdened with some DM 20bn
of fixed interest loans from the
past which were not profitable,
was still unable to report a
profit in its parent bank,
while Dresdner Bank, also
burdened with a big mis-
matched loan portfolio as well
as close to DMlOOm of gold
trading losses, again had to cut
its dividend.

By the end of the year the
threat of further heavy write-
offs on fixed interest securities
had disappeared. Instead the
banks — with varying degrees of
success depending on how the
experience of the past two years
had encouraged or discouraged
Interest rate speculation— were
seeing healthy profits on their
bond trading portfolios and In-
creasingly looking forward as
well to swelling hidden reserves
on the written down fixed in-
terest securities in their port-
folios.

The problems of inter-
national borrowers, particu-
larly Poland, were forcing the
banks to put aside large loan
loss provisions (this burden
will drag on for many banks)..
At home the bankruptcy wave
was making its impact felt <m
the profit and loss account,
alongside the continued write-
downs for AEG-Telefunken.

The flexibility of German
regulatory requirements has
meant that the banks have been
able to burden their profit and
loss accounts with loan loss
provisions to the extent that
their profitability has per-
mitted. Deutsche Bank, ' for

■ example, which once again
emerged as the most consis-
tently profitable of the comrner-
. cial banks, added some
DM I-2bn to its published loan
loss reserves and still boosted
its net income by over a fifth.
Less profitable banks are
having to spread out their pro-
visions against increased risks
over coming years.

It is clear, -too, however, that
tiie banks are tskipg. whatever
opportunities they cart to boost
their equity capital base-
Deutsche Bank's decision not to
■raise its dividend despite such
a strong earnings gam, as well
as its generous provisions
policy, was one sign of this.
Another was Dresdner Bank's
decision again to cat its divi-
dend.

Despite the past two years of
profit problems there is no
doubt that the commexciai banks
remain by far the most powerful
single banking group in the
Federal Republic. No other
sector can truly claim universal
banking status in the way the
, commercial banks can.

They have a powerful position
in tile retail market both in
lending to individuals and in
deposit taking — although, ■ as
with the other banking groups,
high interest rates have made
their depositors much more
yield-conscious and thus made
the management of the retail
deposit base more complex. .

■ Competition by the . .way
means not just competition with
other banks. It also means
• Increased ■ tension within the
individual banks' themselves
.between the banking division
and the department responsible
for advising clients to switch
their savings into high interest
securities issued by other
borrowers such as the Govern-

’ SHL 0r even TiVal mort eage
' In the field of corporate

lending the commercial^ bank'
remain the dominairt forc*
Their position has been rda;
forced by the ready access tites
can offer their bigger German
customers to cheaper Errromar j
ket finance as well as by their
strong international operations^
At a time when Gennan coin-^
parties have had to; concentrate
increasingly on exports ; ti>vfeep.
up capacity utilisation: tfctrlhg-
the domestic recession the m-
ternational advisory and fipan fr- •
ing capacity of the commercial :
banks has been an . invaluable -
marketing aid. Thelrrtraditianal
ties with the corporate, sector
through supervisory board mebR
bershlps and shareholdings
(even if a few of the^ankphave .
had to reduce 1 these, stakes here
and there to boost profitabihtyT
help reinforce their position.; -
Despite tiie J bread% • "■ of
resources the commercial
banks boast as - a r group, how*
ever, one of thq .legacies of the
domestic and interna tiOnal
problems they have "faced in
the past two t years and
continue to face — is. that they
are no longer the- homogenous
group they once were:

Deutsche Bank has strimgly
reinforced its position in the
past two years agAihst-Jtsr big
rivals Dresdner Bank andrCom-
m^zbank, both of. which Shave :
suffered sharply 1 - de clining
profits. BayemcKe ’ -Vereins-
oank is challenging Conmferz-
bank hard and expanding’ its
domestic banking: - network " T
nationally. ’ f • _

Although it is dtar thatnalL _
the German banks ' are putting

JP 08 * < ' m P faas * .onCpro-
Stability and payigg mctCfr
more attention' to jenearatins ■ •
more equity internaHr timrajdi '
retained profits, those , tiiaK .
Mve weathered tile rtormS . of. '
me past two years beitwitf be

JJSJ? hf niore assteative-TD

Ell new

COMMERCIAL BANKS’ PERFORMANCE 1981

Dentsdie Bank
Dresdner Bank
Commerzbank

_ . • ' Interest

Bo- cent Parent bank Percent,’ surplus Percent
Group assets change assets change (parent bank) dianse
(DM bn) on year (DM bn) on year (DM bn) on year

196.4 +10.0 1145 +10.0 - 2A +ZIA

mo + 6.7t 79.6 + 5.0 ■ ~~ L7 +l£5~

I0L3 + L3 6t3

Bayerische

Vereinsbank

Net Income Percent
(parent bank) change ;
(DM m) on year

242.0 +19J)

: -1641

Nfl ' NiT

DbUenO:

om * -

wirto):

~~ * W

Bayerische Hypo

+ 7.8 09

+ 5^ . . 0 3

t Business' vtdume.

m

Ine 9 j, ^

l<r$2

Financial Times Wednesday. June 9 19S2

in

D

WEST GERMAN BANKING AND FINANCE HI

'■ *?***.■

i p s

o "%

tI)e %

ts

interest rates expose
sector’s weaknesses

" AFTER THE problems of the
past few years. I- would agree
that one of oor main jobs is
to r improve our Image and make
sure we avoid major pfcfaHs in
the future " was how one board
mesrfber of a • leading Landes-
bshk recently described part of
the chaflenge facing- ibis sector.

Just liow bag » challenge that
promises to be can be seen from'
the comment below by a board
member of a major savings
bank. The savings banks are
nominally part of the same
pobtkdy-owned segment of tbe
Gorman banking industry. Both
belong tb the puhiic. net the
private, sector, of -the economy,
with savings banks generally
figuring among the owners of
the regional Landesbank. ait
there is not much love lost
between some of the bigger

savings banks and the Landes*,
banks. “ They have no function
which ' could not be done just
as easily by one of the .other
banking groups," was the
harsh judgment passed.

At root the Landes banks act
as liquidity managers for the
savings banks and as house
banks and issuing booses for the
local authorities in the regions
where they operate. In the early
2970s attempts fo break out of
this mould, led by Westdeutscbe
Landesbank, led to one disaster
after another among. most of
the leading Landesbanks, only
the Bayerische Landesbank
succeeded in avoiding trouble!

The high interest rale period
of the past two years and the
particular structure and
functions of the Landesbanks
have led to yet another critical

n *r.* hi-
= l-ir - -

e mucv^

- - -. ~t ni5g ;

V.**

i of r ,,7

;r fj>f»

r- 7. 'Of

n'"""!""'" 1 ”' : W'
'""‘■■I •'tiers* .’

Cautious guardian
of the currency

•. WITH ITS decision on May 6
\ last* to abandon the “ fecial
, Lombard” system of providing
’ short-term credit to the banking
system, and to re-open the
.normal Lombard credit
; window, the Bundesbank (the
' central bank) signalled that it
ibelieves the end of an unprece-
dented period of monetary, re-
straint in tbe Federal' Republic
is now approaching.

■r For over two years, begin-
ning late in 1979. the German
central bank bad pursued a
monetary policy aimed at main-
tafcing the domestic and
nafional stability of the German
currency in the face of, for the
Federal Republic.-: the! unpre-
epted challenges of a soar-
horrent account., deficit,
inflation and strato-
oc American interest rates.

By “tbe beginning of May it
as becoming increasingly dear
at the central batik's rigorous
knd persistent defence of the
paliie of the currency was likely
.0 achfeve its objectives.

MS

2cres

' M ii*

- --

- ji

,

- 1-*:; ’»

It was against this back-
ground, with funds pouring out
of the 0-Mark and the currency
plunging from around DM 1.80
to the dollar to over DM 2.20
and weak . against other Euro-
pean currencies, that the cen-
tral bank - in February of last
year finally moved aggressively
to defend the currency.

The results of the decision to
set a ** special Lombard ” rate
of 12 per cent without any
guarantee that- funds would
always be available at this level
as the banks required became
increasingly apparent as last
year progressed.

The German economy, which
was already slowing, has found
itself locked in a period
st a gnat i on. Real economic
growth petered out in 1981 and
unemployment doubled
almost 2m between the end
1980 and the begbuang of 1982
The overall economic perform-
ance masked a marked diverg-
ence between tbe development
of the domestic economy, where
real output declined by over

That the central bank itself 2 Vfr cent, and the export sector

Recognises that f there could
{till he-' soma . potentially
treacherous currents ahead was'
demonstrated by. its decision to
ieg the norma 1 Lombard rate
it the same 9 per cent level

Bundesbank

which- ruled -on February 19 last
year. It was then that the
dramatic decision was taken to
introduce a “ special Lombard "
at 12 pea* cent a move which
within a couple of months
helped to push up interest rates
right across - the maturity
spectrum by around three
. percentage points.

‘ " A 9 per cent Lombard rate.

, compared with the 9) per cent
special Lombard which it
replaced, means that short-term
interest rates are still at levels
which- cannot be described as
heralding a period of easy
, money. §hort-term funds are
costing businessmen and con-
sumers 12 Id 15 per cent More-
over, the central bank last
month. studiously avoided
taking the step which many
bankers wanted, namely a cut
in minimum reserve require-
ments. •

Such .rates are, however, a
long way down from the 15 to
19 per cent which short-term
funds .were costing in the
middle "of last year.

The Bundesbank began
cautiously to tighten its mone-
tary policy late in. 1979 in
response 4o fears that the
economy; might begin to over-
heat unless action was taken
to rein it in. But it was not
until a year later, after the
central bank had (as it turned
out) falsely signalled a shift
towards dheaper credit in
September of 1980, that ; the
domestic and international crisis
■„ which eventually forced it to
abruptly alter course began to

gather pace. ,

. It was in part this false step,
interpreted in the financia l
markets as a . sign that the
German authorities were under-
estimating the challenge they
faced, which began to erode
confidence in the German
currency. Underlying economic
developments were, however,
pointing in the same direction.

By late 1980 it was dear that
the German economy was plung-
ing towards a world record
current account deficit of
DM 30bn and that inflation,
although easing, from its early
summer levels of 6 per cent, was
showing no. signs’^ of abating.
Political pressures too were
working against the German
currency; The mounting crisis
in Poland coupled with the
election of Ronald Reagan as
American President were both
the ■ direction of

which 1ms enjoyed boom condi
tions.

This combination was just
what lie Bundesbank needed for
it damped down import demand
while exports, helped by the
weakness of the DM ark against
the doBar, surged. The current
account deficit began to improve
dramatically during 1981 foiling
from DM 30bn to DM 17bn. In
the current year a current
account surplus is confidently
expected.

At the same time inflation
which peeked at an annual rate
of 6.7 per cent in October of
last year is widely expected to
fall to 4 per cent by the end of
the year.

A declaring current account
deficit, falling inflation -and in-
creasing scepticism in the inter-
national financial markets about
tbe economic policies of the
Reagan Administration have
enabled the German authorities
to achieve some “ decoupling
from U.S. interest rates which
has allowed them steadily to
ease German interest rates from
the peeks seen in the middle of
last year

The process began in October
when the Bundesbank cut the
“ special Lombard ” rate for the
first time from 12 per cent to 11
per cent. That .move took place
barely she weeks after the
German currency had been
quoted on the foreign exchange
markets as low as DM 2.50
against the dollar. In subse-
quent months the central bank
has steadily encoraaged German
rates down, “fine tuning’* the
domestic credit markets while
suc ce ss f ull y , avoiding zoo rapid
a relaxation of monetary policy
which could have -resulted in
setbacks on both the interna-
tional currency markets as well
as the domestic credit markets.

The central bank’s perfor-
mance has underpinned its
reputation in the. international
financial markets for indepen-
dence and sound judgment. It
has also enhanced the
reputation of tbe central bank’s
president, Herr Kari-Otto PBhl,
who came into office at the

beginning 0 f 1980 amid

suspicions that his ties with the
Social De m ocratic Party might
lead tiie Bundesbank in the
direction, of' making too many
potitkai compromises. These
fears have been laid to rest by
the central bank’s determined
pursuit of policies aimed at
stabilising the value of the
Dmark.

Tire central bank's - critics
continue to argue that it is
moving too cautiously in view
of tiie. weakness of the domestic
economy and the orgeat need to
halt the dump in capital
.Investment spen ding which has
gathered pace tins year. Thus
although the' Bundesbank has
made major strides in helping
to ease the ‘Federal Republic’s
external economic problems the
challenges of unemployment
and the heed to ' improve the
underlying competitive capacity

working in _

attracting funds into the dollar of the economy remain. These
and persistent high ILS. interest ar e .problems over which the
rates were reinforcing the central bank’s influence is much
dollar's pulL less pronounced, however. .

landesbanks

phase for the sector. Worst hit,
of course, was .Westdeutscbe
Landesbank, which last year
had to sell assets worth over
DM 600m by digging deep into
hidden reserves in * order to
avoid declaring a massive loss.
The bank’s owners have
promised to put in fuBy
DM -2.6m of new equity capital
so as to proride a basis for
further expansion after the
problems of the past.

West LB’s biggest problem
was one shared by Dresdner
Bank and Commerzbank,
especially in the private sector.
In the late 1970s it had invested
in long-term loans at 7 and S
per- 1 cent and found itself
financing them in 1980 and 1981
with short-term funds coating
at times over 12 per cent.

Landesbanks, without a cheap
deposit base and acting essen-
tially as issuing bouses oper-
ating on paper thin margins,
were particularly vulnerable to
the unexpected period of high
interest rates— and more
particularly because of higher
^hort-term than long-term rates.
Even Hessische Landesbank.
which had followed a very
cautious policy and tried to
avoid the mismatching of assets
and liabilities through which
the Landesbanks had made
their best profits in a period of

falling interest rates in the
past, could not avoid suffering
from last year’s unexpected
surge in short rates. Bayerishce
Landesbank too had a tough
year.

The sharp fall in rates in
the past few months has sub-
stantially eased the problem.
But the fundamental Change In
the interest rate landscape
which has occurred in the past
two years, with the German
interest rate cycle apparently
headed into a period of much
less predictability and perhaps
even volatility, promises to
make life hard for Landesbanks
in tbe future too.

They are countering the
problem by paying much more
attention to liability manage-
ment, a solution which may
avoid huge losses on mismatch-
ing but does- nothing to solve
the underlying problem of nar>
row margins and the lack of a
broad business base in, for
example, retail banking or the
dose ties which the commercial
banks have with the corporate
sector.

Some of tbe bigger coipmer-
cial banks which have suffered
in the past two years from their
long-term fixed interest lending
are hinting that tbis part of the
corporate financing market is
something they will happily
leave to the Landesbanks in the
future. But for the Landesbanks
to play a big role here will
require healthy injections of
new equity capital to support
volume growth — and capital
promises to be in short supply.

‘ J" , II,'' , ." ^ f

. : • •• •„ *.-«N ■ : .. • S-si-,1

,. I s- * t“**4

v ■» , .\» v ; v :: v f„ • .S
. J . . • ri^y-

The Bundesbank building
and the television tower; at
Ginnheim

LANDESBANKS— DOMESTIC MARKET SHARE

(per eentV

Loans to companies and self-employed

1976

15.5

1977

15.4

1978

15.0

1979

14.3

1980

14.3

1981

14.1

Loans to private individuals

1.7

L7 LI

1.1

L7 1.9

Bousing loans

14.4

13.7 13.1

123

1L7 11.4+

t Affected by change in statistical basis.

Source: Savings Banks Association.

THREE LARGEST LANDESBANKS IN

1981

Westdeutsehe

Total assets
(DM bn)

I2&2

Percent
change
on year

+8.0

Operating

profit

(DMm)

726f

Percent
change
on year

+79.0

Interest

surplus

(DMm)

€ S3

Percent
. change
on year

-143

Net profit
(DMm)

71

Per cent
change
on year'
+16.0

Bayerische

90.8

+7-5.

289

-14.1

514

- 1.8

114

- L5

Hessische

59.1

+fL5

40

-60.0

180

- 2.0

45

-30.0

t Includes exceptional profit from asset sales.

WestLB

Headquarters;

PO. Box 1128
D-4000 DQsseMorfT
TeJ. (211) 826-01

EapfeitLQfee;

TeL {611} 25791

Branches:

London. M 6386147
NewYoric/TeL 754-9QQ0
Tokyo. Tel. 216-0581
Subsidiaries;
lAfestLB international SA
Luxem bourn, Tef. 447*11
WfeslLB Asia Limited.
Hong Kong. TeJ. 5-259206
Bepresentei?ne_Qffices:
Latm-America Office
NewYoricleL 754-9620
Rio de Janeiro
Tel. 2624821
Toromo/feL 869 1085
TbicyaTel. 2134811
Malboume/feL 6541655

Banque

ftanco-AnemandeSA
Paris, TbL 5630109
Banco da Bahia
invsstimentosSA
Rio de Janeiro
Tel 2539723

WestLB derives its prowess in international
finance from multiple sources.

Large-scale financing
calls for a bank with all the
credentials and expertise
needed to ensure a smooth,
competitive functioning of

any major money raising Bank one of Germany’s top

operation. three international irsstitu-

_ WestLB’s approach in ini- tions, a solid wholesale
tiating and organizing world- financing partner,
wide syndicates, its own
resources, international flexi-
bility and well-balanced ■"

sources of funds make the

WSestdeutsche Landesbank

A strong force in wholesale banking

IV

Financial Times Wednesday June; 9 19S2

-v-- « ; *

Productivity
in international
finance.

Landeebank Stuttgart is based in the
heart of Baden-Wurttembefg, noted
torprockKah^arxiforitsacrtevements
in science, technology, and Industry:

Rar pioneere such as Johannes Kepiec
whose epoch-making studies of the
planetary system helped lay the foun-
dation of modem dynamical astronomy

Kepler tea typical example of the
deep-rooted commitment to dHigence
and productivity that has made Baden-
Wurttem bag one of west Germany’s
most prosperous states and head- -
quarters of some of the world's leading
names in business and industry

Productivity is also the cornerstone of
our banking philosophy at Landesbank
Stuttgart one of southern German/s
leading banks with assets of over
DM 24 billion.

Combining domestic strength with
presence in the key Euromarket centers
of Europe, we are a reliable partner
in international finance. With a full-service
branch in London and a wholly-owned

subsidiary in Luxembourg, we. have the
capabilities and flexibility to meet the
financial requirements of a growing inter-
national clientele. In Zurich we are rep-
resented by our affiliate Bank fur Kiedit
imdAussenhandeiAG(BKA)and in Paris
by Banque Franco AJIemande SA (BFA).

A government-backed bank author-
ized to issue own bearer bonds, Landes-
bank Stuttgart te part tfQemiaiiyte
vast Sparkassen network.

Fora banking partner whose first pri-
ority is pnxluctivity, pteasecxmtact Lan-
desbank Stuttgart

Stutfoart Head Office
Lautenschlagersti 2, D-7000 Stuttgart
Telephone: (7t1) 2049-0,Taex: 7251938
London Branch

72 Basinghail Street London EC2V5AJ
Telephone: 01-6068651, Totac 8814275
Luxembourg Subsidiary
Landesbank Stuttgart International SA
1, Place cfArmes, Tel: 418 84, Telex: 3551

Where money Is productive

Landesbank

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•••••

BNP

• •
• •

Group

Banque Nationale de Paris, first bank in
France with 20G0 branches, has an
international network of 700 branches
in seventy-seven countries worldwide.

In the Federal Republic
of Germany

Frankfurt am Main

Banque Nationale da Paris

Branch

Bockenheimer Landstrasse 22 ■

Tel: 720231 Tlx: 411312/412954

Dusseldorf

Banque Nationale de Paris

Berliner Allee 34—36
Tel: 84651

Saarbrticken

Banque Nationale de Paris

Branch

Bahnhofstrasse 36
Tel: 30721

Tbc 4428684/4421223

Banque Nationale de Paris

Talstrasse 29
Tel: 30725

Hamburg

Banque Nationale de Paris

Schauenburgerstrasse 44
Tel: 362596

Homburg/Saar

Banque Nationals de Paris-

Saarbrucker Strasse 13 ;
Tel: 2082

Stuttgart

Banque Nationale da Paris

Kronprinzstrasse 12
Tel: 227061

Saarlouis

Banque Nationale de Paris

Grosser Markt 10
Tel: 3042

Banque Nationale de Paris

Head Office

18, Boulevard desftafions, PAF3S 75009. Tefc 244-4546. Tbc 280 605

UK Subsidiary:

Banque Nationale de Paris p.|.c.

8-13 King William Street. LONDON EC4P 4HS. Tel: 01-626 5678. Tbc: 883412

••

*•

IMMMMMIMntMMHMMlMMtttl •••• •

WEST GERMAN BANKING AND FINANCE if.

River Main skyline. Left to right: Dresdner Bank, BfC ( Bank fur Gememwirtschaft) end Commerzbank

moves to
market strongpoints

OUR TOP priority is to
defend our market position," is
how one leading savings banker
described the business strategy
of the savings banks, the second
most powerful banking group in
West Germany.

He might have added that
tactically the savings banks
have decided that die best form
of defence Ls attack, for they
are certainly not waiting to find
out where their competitors will
strike next. Instead they are
out pursuing their own
initiatives and hoping to keep
their rivals off balance.

In the field of electronic
banking, for example, they have
moved ahead aggressively and
wifi by the end' of the year have
around 700 cash dispensers in
operation, far more than any
of their rivals. AH of them can
be operated by the ubiquitous

Eurochequecard ” which wiH
be the foundation of the German
banking industry's paperless
payments system of the future.

Symbolically too the savings
hauls have been making the
point that in the market where
they are the strongest force,
the retail or consumer banking
sector, they are no longer pre-
pared to tag along as second
fiddle to the former pace-maker
Dr Eckart van Hooven o£
Deutsche Bank, the man whose
vision and energy have helped
to pull both Germany’s and
Europe’s retail bankers closer
together.

Thus In the field of payments

systems the savings banks
destroyed . part of . Dr van
Hooven’s plans by going it alone
in the fieid of travellers’ cheques
with American Express. And
it is Herr Wolfgang Starke,
general manager of the Savings
Banks Association in Bonn, who
is slated to become chair man of
the new Common Payment
Systems Company embracing
the major banking groups in
the retail banking market.

But perhaps the most contro-
versial move, and one openly
opposed not only by the rival
banking sectors but also by the
bank regulators, is the sug-
gestion that ■ savings banks
sbould be allowed to count the
guarantee from their owner,
the local governments in the
areas where they operate, as
equity capital to the extent of
20 per cent This move, which
is being pursued in Bonn, would
increase the savings’ hanks lend-
ing capacity under German
banking law by perhaps
’ DM 70bn to DM-fiOba* a. change .
which could tilt the competitive'
balance in the savings banks'
favour.

The arguments the savings
banks put up to support their
case include the need to com-
pensate for disadvantages the
savings banks suffer from their
basic structure and also to com-
pensate for inequalities result-
ing' from the corporation tax
system and in comparison with
the co-operaitive banks. ••

They point out, for example,

that because they pay no divi-
dends the two-tier corporation
tax system works .against them;
that because they are. local
authority owned, and local
authorities in Germany are
stretched for cakh these days,
they are dependent on retained

major lending sectors In recent jl
years and have beeome-ihereas- | > I
ingly dominant in lending to)

Savings banks

the private market
They have also . Weathered
the recent period.;.~o£ big
interest .rates rather bettef f
than some of their rivals J '
the ; co-operative banks :
d tided. Lending .. ma ygiTwi

1981 for the savings banks
a group increased ' from -
per cent of total assets to .
per cent for example,. reflect
the advantages, of the dam in

earnings for increasing their
capi tal and cannot go to share-
holders for funds like the com-
mercial banks; and; they draw
attention to the restrictions
they suffer in terms of haying
to bade their loans with col-
lateral and in terms of being
unable to provide full inter-
national banking ' services
including foreign exchange
operations.

■ - In theory the latter services
are provided by the Landes-
banks, which are part owned by
the savings banks. In practice
the relationships between the
savings banks and Landesbanks
are so often strained that
co-operation is - but a distant
dream.

Pity for the predicament of
the savings banks has its
bounds, however. At least on
the Bundesbank figures they
have been increasing their
market shares in most of the

position of ' the 'ravings - bairsT' ' .-V
■ iaiiiisl.

in.the Market 'for cheap Sawiris
deposits and the high lefcdig-

«■ Aviv ** ' Jp

rates of new businesses. r ,
The period, of hjgh ’interst ^ j
nates and the growing inters*
rate ooriwaousness r amog
depositors =th«t this has po*:
duiced is . of: course a citer wan- - i
ipg to the {Wangs bank* :-tnat; ;.
times axe changing, -iast jfear
saw virtually ho growth in. Tii"
cheap savings deposits; he ~
modest
, was dhe r

of interest
deposits
all banks
tio'n to lit

SAVINGS BANKS — DOMESTIC MARKET SHARE

(per cent)

. 1976

1977

1978

1979

1980

1981

Loans to companies and self-employed

18.9

19.2

19.6 -

20.7

21.9

22Ji

Loans to private individuals

32.0

34.0 -

35.4

sea

37JS

37.5

Housing loans’ /

27.9

27.6

27.9

28.4

28.7

27Jf

t Affected by change in statistical basis.

Source: Savings Banks Association.

that these vas.‘ ‘ . i '
aocajmuteWn s cl -
ients bn existing
new savins. 1/lSth '
mote aftien-

idity ~numa gftn;pn t •
for cheap deposits
has increased and wiH con-
tinued, to increase.

Overall, however, with owner- ..
ship of around 40 per cent of .
the banking offices In the
Federal Republic and with over;
half the Eurocheque cards
Issued by savings backs they
are well placed to maintain
their dominant position in
their traditional retail banking
market

Holding their own in -the
market for corporate business •
now that the Mg commercial: -i
banks have set their hearts era I
winning a bigger share of the • .
medium-sized company mar ker-: •:
promises to be a much tougher c-
task.

Countrywide roots prove source
of dynamic growth

A LOOSELY bound network of
some 4,000 individual banks
has in the past 20 years
emerged as the most dynamic
banking group in West Ger-
many. This is the co-operative
banks.

With their roots back in the
self-help " societies of the last
century, the co-operative banks
have a long history, bat It is
only in the post-war period! and
particularly since the merger
of the two. co-operative banking
associations, the Volksbariken
and tbe Raiffeisenbanken, that
the co-operative banks have
been able to make the most of
their advantages and increase
their market share, at the
expense especially of the savings
banks.

Thus today the co-operative
banks can claim a market share
of the Federal Republic’s bank-
ing sector of around fifteen per
cent (DM386bn) measured in
terms of total assets. This com-
pares with around 8 per cent
in 1971, when the balance sheet
volume was DM22bn.

One of the clues to the
growth of the co-operative
banks is the number of
branches they have. With al-
most 20,000 offices and branches
throughout the country they
are by far the strongest bank-
ing group.

The number of offices the
co-operative banks operate is
one of the factors which gives
them a closeness to their cus-
tomers which probably no
other banking group can match,
for alongside the branch net-
work is the added factor that
each of the 4,000 independent
credit co-operatives is owned
by its members and has a
supervisory board made up of
the membership. In the . past

20 years the membership of
credit co-operatives has
doubled from 4m to 9m.

This membership Is the
original source of the banks*
equity capita*, and here lies one
of the Contentious issues of the
day. For in addition to paying
in capital the member
guarantees to meet a call few
new capital up to a certain level
should the credit co-operative
get into difficulties. A propor-
tion of this uncalled capital is,
under. .German banking law.
counted under tfbe regulations

Co-operative

banks

setting out how big a loan book
a bank can have as a multiple
of its equity — a concession
which the savings banks say
gives the credit co-operatives an
unfair advantage.

In the mid-1970s it was agreed
that the credit co-operatives/
could expand their business to
non-members and that too has
helped their growth. But along-
side the nearness to their
customers and the ability there-
fore to make- quick decisions
and L adjust rapidly to market

conditions,- the co-operative
banking -sector has also been
expanding its range of services.
Where a relatively small
co-operative bank (the -average
total assets of individual
co-operatives is only around
DM 70m) lacks the expertise to
provide a service, other parts
of the co-operative sector will
often be able to help..'

As well as helping to manage
the liquidity of the co-operative
banks and the nine central insti-
tutions of the sector, the D-G
Bank in Frankfurt, the central
banking institution of the
cooperative banking sector with
assets of DM65bn, has deve-
loped into 'a universal bank
Itself, helping to provide inter-
national banking services for
Ifae co-ops. The co-operative
movement also has its own
building society, the Baos-
parkasse Scfawfibteh HaH, and'
insurance company.

Another factor which has un-
doubtedly contributed to the
market strength of the co-
operative banks is the improve-
ment in management. In 1957
there were 11,795 individual
eo-operatives compared with the
4^)00 of today. Mergers and
greater emphasis on training
and management have enabled
the sector to work more effec-
tively. So too has the merger of
the two sectors, since initially
one segment of the co-operative. -

sector was identified mostly witi
the farming community, the
other more with the -towns. !

The substantial — 15 per oeu|
share of the total b anki ng,
market which the cooperative
sector has won should not how-
ever mislead the observer into b ?
thinking that, the co-operative] \
banks are as broadly, based as; ; \
their competitors. Theirs .; ’
strength is undoubtedly in tbe/
personal lending market and in) -}\
loans to the self-employed, in-.*
eluding farmers. This has !beetf ^
a big advantage in recent years.’
The explanation for the 42 per ! <
cent increase in the sector’s- -.J
operating earnings in 1980 at a .-:'
time when most banks were! -’-'
suffering plunging profits and" . -
for the growth and profitability ' •’
recorded in. 1981 lies dn part in',
their customer base.

The co-operative banks have ^
.around a, 25. pear cent market. ••
share . of cheap savings deposits
hut they .lend their funds gener- < ’
ally- short-term at. floating
interest rales — . a . . structure.' 1
which has brought fat profits
during the high interest rate 11
period of the past two years.

One statistical point needs to be
added, namely that the Bundes-
bank’s figures - for profitability ,
abstract the DG Bank and the /
•central banking institutions off
the co-operative sector, which'};
have, been labouring under the ',
burden of high interest rates. . *

CO-OPERATIVE BANKS— DOMESTIC MARKET SHARE

(percent)

Loans to companies and self-employed

Loans to private Individuals

1976

1977 1978

1979

1989 . 1981

1345

22.1

LL2 15.1

16a

MLB 17a

Housing loans

10.4

1L1 1L8

124

24J 24. 5

13.1 LL2t

t Affected by change In statistical basis. -

Source: Savings Banks Association-

A

l

OUR STRENGTH
HAS MANY ROOTS

... -S 1 .

.. r .3

-tI r

.. .....

: | dg BANK is the' international arm

ihd liquidity manager of a banking
-TwiffC ivstem with consolHated-assetseje
^ ^seding DM 377 billion o t US $167

billon. . .. . . ..... ■ • '

i* . We serve a prime dien^eor.eqr-
3 Wate customers and fuiblicauthpri-

. ties M over the world, providing
sound solutions for complex financial
-problems.- -
.. ihe'19,700 domestic, banldngof-

\ ficesof bursystem ‘-themostexten-
sive^n^workintbe FederalRepubiic
of Genrrany~ virtually blanket the

country, providing accessto a cross-
section of tiie Gerirm economy. .
■ - On the other hand, we are acces-
sible through branches; subsidiaries
and representative offices iirttiecen-
.ters of international commerce' and
finance. :

Thus we combine the financial :■ saythat our strength has many roots,
muscle and the market penetration of:; DG -BANK, P.O. Box 2628, ;
a strong system with the flexibility, Wiesenhuettenstrasse 10, D-6000
special expertise, and fast decision- Frankfurt am Main 1, West Germany,
making process of a: wholesale.corfh. . Telephone:, (611) 2680-1, Telex:
merdal and investment bank. 412291.

Thatis what we mean when we

dgb*kC*

Deutsche Genosensdiaftsda*

The broadut based Bank

Fiiiaficial Times Wednesday Juue 9 1982

WEST GERMAN BANKING AND

IjSa

Stock markets need to play bigger role in equity finance

T!l-, ' fctrr -hnfc

r it WOUU) be very dangerous 1
if the GentianbanJdng industry"
and ofacialcapilaimarfeetpoUey.
>'ere .to wroelto.y acpe^
VirrQWcess" jmdlbwtcapacity 4jf-
by . German share market,''
Jis view stated ’bluntly in the
ijtesv animalrepttrt of. ..the
/jncesbani' the.^est'C«nnaii'
rental, bank, feJghHghts one -of -
/the longest lasting.. proWeias
I faciig the- eotmtcjS financial
raaKets— namelytbow'ean West .
Genus stock exchanges bwaae
asffident as t&e ^iare rnarkets
af other " ."major; • ; Indn^trial
ajotries. "■ ; . ' • .& /’■> ‘ .. .

y cmnparison - "Wth most .

stir leading !^

jootries "'the West German '■
3t?k exchanges play a rndnor
re In wipplyfng the risk
sfitai urgently needed- by the
cporate sector, a fact reflected
Uthe dangerously low level of
japanies* eqrrity financing. .

As the Bundesbank . makes .
ipr, the long apparent contrac-
ip of German enterprises*

E cse and tfieir inadequate
n against . risks are ,
developments. ‘"It 1
list be emphasised that the
arttal obtained through the
xuriwt by issuing shares is not
adequate counterweight, to
th/low level of capital formed
taintag profits.” .
espite the ability of some
trial sectors to compensate

.for f ailing ' domestic, / d ema n d'
through higher eaqrort' business,
corporate profitability generally
Has been under- heavy pressure
rln the last two years, falltoghy
?5 per cent in real terras. Prices
in the share -market were pier 1 -'
: tioalarly depressed last year by
■^deterioration “in profitability
in many sectors of the ecoapmy
up to the summer.

In recent wdeks the stock
marketer have been surprised by
some cuts in' dividends which
have resulted- from last year's
dipcqlt tradilig conditions. For
instance. Continental Gummi
Werke, the- country's leading
tyre producer, recently
announced tixat.it would have
to omit . a dividend payment
altogether for 1981, after suffer-
ing a major fall in profits and
barely breaking even last year.
The lack .of a dividend came
as a particular, disappointment
after Continental had resumed
payments in 2980 for itte first
time in eight years.

Other companies forced by
dwindling profits to cut dtvi*.
dends in -recent weeks include
Pfaff, Horten, toe country's
fourth largest stores group,
-which has been bard hit by the
decline, in retail expenditure.
Brown -Boveri, the electrical
engineering group, Kali nnd
Sate, the chemicals concern, and
Varta, the world’s third hugest
producer of batteries. Wlth fall-

: log dividends too at Volkswagen''

and BMW, no dividend for t he
second year running at Com-
merzbank and a further cut at
Dresdner Bank following the
dividend reduction of 1980, tire >
misery of squeezed profit
margins has been spread over'
many sectors.

■ It would be wrong to see a
picture of unrelieved gloom,
however, despite the inclusion
. of several illustrious names in
-tiie.- Hst of companies cutting
.payments to- Shareholders. Of
-the- first 200 companies Tnawny
dividend ammuncemente for'
1982, " 229 held payments un-
changed, 31 raised’ dividends
sod -40 were forced to reduce
' payments. Given the stubbornly
continuing recession the picture
might have been far bleaker.

In the first four months of
tod* year toe West German stock
market has in fact mounted a
strong rally — to the surprise of
many observers — although it re-
treated again into a period of
quieter consolidation during the
past month. The index of the
“Frankfurter ABgemeine Zettung
reached a peak for the year in
early April of 239.45 compared

with a 1 ow in mid-January of

218.35. The market reached a
peak last year in July of 243.47
after, a low in early February
of 215.75.

In the space of seven weeks
from late January to early

March titis year -German share
prices advanced, by a healthy
7 per cent, bringing a new air
of confidence 1 to fixe country's
stock, exchanges even though in
-a ; longer perspective there is
stffl much ground to make up
before historical peaks are
scaled .again. . Share prices at
their best Ibis year have still

Risk capital

Kevin done

been nearly 17 per -cent, tower
than in the autumn of 1978, the
highest point in the post-war
period, and they were still 4 per
cent below last year's high.

The recovery in the early
months of this year in share
prices came all the more sur-
prisingly as German stocks ap-
peared to be bucking the trends
of other major international
markets. According to the
Hamburg - based Vereins - and
West B&nk the rally was “in
striking pontrast to the trend
in certain other world markets,
such as. the U J5., Canada and
Japan, where prices have been
easing for quite some time, and

it docs indeed indicate that the
German equity market is able to .
shrug off the international
consensus. Interve ning periods
of consolidation apart, we expect
this trend to continue.” ■

By die beginning of June
share prices had fallen about
4 per cent below the early April ’
peak, with nearly all sectors
suffering setbacks, and it re-
mains to be seen whether the
loss of interest is only a tem-
porary period .of consolidation
or whether it forebodes a longer
period of retrenchment .

The main reasons for the re-
cent relative lack of enthusiasm
appear to be an upsurge in
profit-taking, international ten-
sions — particularly in the Falk-
land! Islands and in the Middle
East — and the continuing at-
tractiveness of certain sectors
of the bond market

More promising signs for the
West German economy do not
yet appear to be strong enough
to support a sustained recovery
in share prices, although factors
such as failing interest rates,
slowing growth in inflation and
the dramatic improvement in
the country's external position,
with the virtual disappearance
of the last two years’ massive
current account deficit, did help
the rally in the spring.

The country is stVH suffering -

from a split economy, however,,
with companies dependent
chiefly on domestic demand still
suffering from falling or .stag-
nating sales and new orders,
while companies in strong ex-
port sectors have been able to
compensate for falling domestic
orders by selling more strongly
abroad.

Last year, whenever there was
a rally in the German stock mar- .
kets, it was generally inspired-
by foreign investors, whose net
purchases of equities and
mutual fund shares totalled
some DM 2J>bn in 2981, or more
than three times as much as in
1980.

Interest has been partlccrlaiiy
strong from certain key Middle
East investors and there have
been persistent rumours that
Kuwaiti interests have sow
assembled a holding of around
25 per cent in' Hoechst, West
Germany's largest chemicals
company and The largest phar-
maceuticals company in the '
world-

interest in German equities
from the Middle East in "the
early 1970s forced several
major companies to Introduce
limitations on voting rights. In
the meantime Kuwait has built
up significant interests in com-
panies sucb as Daimler-Benz,

Kqrf Stahl, Volkswagen do
Brazil, the Brazilian subsidiary
of VW, and Metallgeselschaft,
while the state of Iran still bas
holdings in Krupp and Deutsche
Babcock. •

Foreign investors could be
attracted in by the continuing
relative weakness of the D-mark
.against the UB. dollar and by
.tbq prospect of brighter cor-
jjorate profits in the current
year.-

Cost pressures are visibly
starting to abate, with import
prices— not only for. oil and oil-
related products but also for
.other commodities — showing
only modest month-on-month
rises. The trades unions have
already agreed to moderate
wage settlements in most major
sectors of tixe economy, below
the rote of inflation, and borrow-
ing costs are - clearly on the
decline.

Earnings should at least be
maintained after last year's
steep fall, but it could well.be
that a • more marked recovery
will have to await a more
general pick-up in the economy,
which though promised for the
second half of 1982, is still
showing little sign of materialis-
ing.

Short-term rallies in the West
German equity markets will do

little to overcome the baric
weakness of the share markets
as a source of risk capital, how-
ever. As the Bundesbank podnts
out; “In view of the medium-
term tasks ahead of it the
German business community
urgently needs an efficient
market for risk capital. Every
effort should be made to render
toe German share market so
attractive to enterprises seeking
capital and security buyers
interested In equities that, in the
long run. it will become as
efficient as the share markets
of other major industrial
countries.”

According to the West
German central bank such
measures should include the
public limited company under
company and tax law with the
aim of making this form of
organisation more attractive
also to' medium-sized and
smaller firms. The banks .too
are called on to make it easier
for enterprises to approach the
stock exchange. It would be
incorrect to assume that there
is a lack of risk capital in
Germany, says the Bundesbank,
“but tax concessions and
supposed or real advantages
presented by other forms of
organisation quite frequently
direct such capital into
economically dubious channels.”

r-

rl •••

Essential commitment to a world presence

• • prQ THE end of 1974 the foreign cent of its bust

- .1 '* atsnches of West German banks earnings come

" "■* uTby i»m hllcinori* TrnlnmA TVbl Kupiviaap *9 O'hA

business volume and petitors from the UB S the UK
from “foreign and Japan,' for example, are
operating around the world
and looking for customers too
in the Federal Republic itself,
the major German banks can-
not afford to limit themselves
and the range of services they

>3* nf d a. business volume, .of DM business." The term is open to
^ ’’ j J bBf - At tbe end of last year a dozen different definitions but
e4 fie \ figure had risen to it gives some idea of the im-
u pM 120 bn. This rapid growth .portance-of overseas operations
ji s iu 5| a partial indicator of the to the bank.

‘‘-3 fextrefc-dihaty growth of the After the crisis and alarms

jeripm banks overseas — partial which have struck the inter- offer ^JusTTo 'tixeir "domestic
Mcatae . the data exclude the national banking markets of the nun-feet or they will risk losing

:of the foreign suIk world in the past two years— ^ of that too Like olher

_ - in places such as shocks such as the Polish debt international banks they must
Lnxedboarg where a large part- rescheduling, the collapse of ^ be in a pOS ition to tap the
ff the German banks' foreign major companies such as differ international funding
jrp.miop ha? taken place free Branift and, the continuing York Hone

?r(»ntpe. constraints of German problems of groups like Inter- * 5

law. ' - * ■ r national Harvester — it is no

TTbe commitment . of the Ger- surprise that the shareholders

Kong or London — and, especi-
ally at a time when major

“ r : = f jan banking ^ industry ^ abroad of the big German" banks .no
.« hearily concentrated, in ore- longer see the banks’ foreign

- " T - iVer * 011 a relatively few inajor operations as "the unmitigated

’ ■ f institutions — ih tho main the big blessing they once seemed.

- Tpommeifcial banks.’ Thus the Commerzbank’s chief execir-

r. ]: [savings banks; the ringie largest - . ttve Dr . Walter Selpp . spent

h jankliag sector.- must carry out .some time' at the bank’s annual

■ r. ; *e bulk of* their forei|m : «8)iera- meeting this year explaining

: ■ jzy.v: Sots through the Lapdeshank why, after the bank had written -
• - - jam: which they partly owtH -The co- off 10 percent of its DM 600m
— -S' ^xerative banking sector, is de- non-guaranteed Polish commit- -
. -1 or aendent on its “ central bank,” ment, he still felt that it was

he DG Bank in Frankfurt, for vital for the major German

. .. -T.y. unch of the focsign business- banks to continue to operate in
^ "jr. Jervices it can. offer. international markets. Dr

■ "" Thus it is a relatively small

International

business

STEWART BJsMtN.G

multi-national companies are
putting so much effort into
foreign exchange business, be
in a position to provide soch

lumber of the biggest and most
• sowerful- . banks— commercial
ianks 1 ' sucb as Deutsche 1 Bank
.: ’- md Landesbanks such as West-
-..'.if: leutsche Landesbankr-which
cri .re the flag carriers for the

Wilfried Guth, joint thief execn- * se ^ ices w° rl dwide.
tive of Deutsche Bank and the But above all the German
man responsible for the bulk of bonks feel themselves com-
its ■ international business, mitted to international opera-
stressed to the. hank’s share- tipns because of the heavy
holders that despite its heavy export- orientation of German

international commitments the industry and because of the

industry centre of its operations is and opportunities presented by the
Bank for will remain West Germany. . ; direct investments which their

customers at home

. • -x -2 Jerman banking

..' ibroad. Deutsche „ , , . , . _

* sample, which as a group has, Fofr banks of tins size, as Dr corporate

ofal assets of around DM 196bn. Seipp pointed out; the world, is have made and are making
!oncedest that around 40 per a single market. When com- abroad, especially in tiie most

attractive markets such as the
U.S.

That said, " they have also
become painfully aware that
too uncritical a pursuit . of
growth in foreign markets, even
with the justification that they
are carrying out -their patriotic
duty and supporting German
exports, is foolhardy. Above
all, the economic and political
crisis in Poland and the reper-
cussions in the rest of Eastern
Europe have convinced many
German bankers of the dangers
when making lending decisions
of relying too heavily on com-
forting theories and - w a r m feel-
ings of pride in serving both
country and customer.

The German banks are, quite
simply, disproportionately com-
mitted to the East Bloc, with,
fbr . example, one-fifth of
Poland’s debt on their books.
The provisions which they are
having to put aside against this
risk will burden their profit and
loss accounts for several years
to come. This helps explain
why German banks have cut
back drastically their East Bloc
lending, restricting it to short-
term trade finance through let-
ters of credit, even though
some of their industrial custo-
mers have been heavily depen-
dent on East Bloc trade.

- There is thus unanimity that
the . days of untrammelled
growth in international markets
are over for the. German banks,'
as their declining role in the
syndicated Eurocredit market

shows. The problems the Soviet
Union has had and continues to,
have getting new credits from
German banks and the switch in
East Bloc lending to short-term
financing are one sign of this.
The fact, as a result of the
Falklands crisis, that some
German exporters are finding it
hard to raise finance for exports
to Brazil, is another.

In the background too, of
course, is the fact that the banks
themselves are expecting, as a
result of proposed banking law
reforms, soon to be required to
back their foreign business with
more capital As the much
increased loan loss provisions
and write-offs in the ' German
banks’ balance sheets show, the
banks themselves are much
more aware of the need to have
a thick equity capital cushion in
order to cope with the added
risks in. international markets.

There is no question' of the
leading German banks pulling
back from international markets.

. On the contrary more and more
of the smaller institutions are
having to set up overseas opera-
tions or strengthen them in
order to finance their domestic
customers. But there is a much
more cautious assessment of
risk .and profit, partly as a
result of the weak earnings of
the banks in the past two years
and a much more careful judg-
ment of where and how to
expand abroad. In this respect
even more attention is being,
paid to the North American and
Pacific Basin markets.

t=3F=5C=]LJF=

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5 8 B’V'-

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i

VI

Progress Report 1981

Hessische Landesbank - Girozentrale -

Achievements
In a trying year

Head Office
Junghofstcasse 18-26
D-6000 Frankfurt/Main
TeL: (0611) 132-1
Tx: 415291-0

Tingnpafll THgTilig hte

December 31

1979

1980

1981

— DM million —

Business Volume

SIMS

57,195

61,980

Balance sheet total

49450

54,427

59,063

Total credit volume

41,420

45,542

484)86

Short-term assets

10433

11,806

15£13

Due from banks

7,700

7,683

9400

Dne from customers

2,433

4423

64 13

Long-term lending

25,865

27,466

27,865

Lending to banks

3,719

4,192

4,517

Lending to customers

22,146

23,274

23,348

Short-term liabilities

10412

13,447

16,573

Long-term liabilities

6,847

7,262

6,62 6

Bonds issued

21448

22454

23,747

Capital and reserves

1,086

1451

1,196

Helaba Fd=sidiMidd s S

Hessische Landesbank -Girozentrale-

COMMERZBANK SSt

London Branch:

TO-n Austin Friars, London EC2P2JD, Tab 638 3335

Tt; 8954 308

HendOffct: ?. O.Ber E5K, jaBggrWatJMgB
D-ano fioouwMMn. Bumos Ann. Cairo cantos,

Bmnffw cnrt S pWMtltr Cown toq ^Jaflgte.

Anssnfm Anfneip Aranw. Jobor-neauifl Luna, tfcxMA
Sandora. Srowot, Chcaga, Manama iBornorO. Uoxim c?e
HonqKw& Lmtofl. linen. Mcrcro Pskmj Pja He Janttfa,
BatnB.uiisutliwiYtaV.Pnii!, Gda Remo. Spine* Twho^
Boeotian. injopcrr, W(va toqm, InfflBc. V.'tresweK.

No fuming back now!

Getting an international project off the ground is often less
hazardous than assessing where it will wind up.Thafs why it’s
essential to work with bankers who can provide the resources,
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Have a talk with Commerzbank. Before you get your next
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9 19S2

WEST GERMAN BANKING AND

Financial Times Wednesday ^ ne

FINANCE vi :

The mam banking hall of the refurbished Dresdner Bank building in B? n1 ?7..'p 2e a * 7 ” S P

customers with the best available service and advice.

Long struggle in search of

a unified approach

i

AT FIRST glance there appears
to be agreement among West
German bankers on the need
for a unified approach to the
rapidly growing business of
payment systems — cheques,
travellers’ cheques, plastic
cards and the electronic trans-
fer of funds.

' This agreement however,
exists only on the surface. The
reality is that German savings
banks, commercial and co-
operative banks have achieved
a fragile consensus on the. need
to co-operate in developing a
nationwide payments . system
for the 1980s.

Behind the superficial agree-
ments setting up a new Com-
mon Payment Systems Com-
pany is a history of struggle
and conflict among leading per-
sonalities in German retail
banking.

What Is at stake? The debate
concerns the development of a
mass card payment and cash
dispenser system for German
consumers, to be based upon
the 15m Eurocheque guarantee
cards in circulation. In addi-
tion there is the question of
Eurocard, the upmarket travel
and entertainment card Which
is Europe’s answer to American
Express.

There is also the tangled
question of travellers’ cheques,
with Andes and Thomas Cook
working to lure different seg-
ments of the German banking
community into their networks.
Beyond these exists a nearly-
unanimous enmity toward Visa,
the U.S.-based payment system
group which is seeking to peae^
trate the German market with
Visa cards issued by a Bank of
America office in Frankfurt

The idea was that ETd would
purchase Midland Bank’s
Thomas Cook subsidiary and
form a new travellers’ cheque
system, ETC-Cook.

But American Express, the
world market leader, succeeded
in persuading the German sav-
ings banks their travellers’
cheque interests would be
better served by linking with.
Am ex in a non-exclusive three-
year sades agreement. With
more than 50 per cent of the
private bank customers in West
Germany, the savings banks
proved a powerful force.

Because the German market
was regarded as • the most at-
tractive in Europe, the ETCI
consortium plan fell apart last
year when German banks failed

Payments

systems

ALAN FRIEDMAN

Eurocheque Is the successful
multi-currency cheque fathered
partly by Dr Eckart Van Hooves
of Deutsche Bank. Last year
Germans travelled abroad and
wrote more than DM 300m of
Eurocheques in foreign cur-
rencies. But the system is paper-
based and most bankers agree
that in future paper systems
will prove too costly, and less
efficient than the new electronic
technology which is revolu-
tionising retail banking around
the world.

As a result German bankers
are planning to develop the 15m
Eurocheque guarantee cards
into a new system, a plastic
cheque or debit card. The cards
are being equipped with
magnetic stripes which will
enable them to be used in point-
of-sale terminals in' large
department stores such as
Hertie or Kaufhof.

Eventually, a customer will
be able to use the Eurocheque
card to make a purchase and
the amount will be debited auto-;
matically from the bank
account. The paper cheques
will still be required, however,
for smaller shops.

The Eurocard is an upmarket
piece of plastic, linked into,
the MasterCard International
system of 3m merchant outlets
around the world. This loss-
making German card system
last year accounted for DM lbn
of sales turnover: there are
nearly 200,000 cards in circula-
tion.

The Eurocheque and Euro-
card are two of the three ele-
ments of a sy stem which
German bankers hoped to put
together in a new Common Pay-
ment Systems Company. Bat a
series of disagreements between
the savings and commercial
banks has forced the bankers
to discard the idea of unity on
travellers’ cheques, the third
leg.

The discord concerning
travellers’ cheques, although not
of earthshaking financial im-
port. Illustrates the problems
which face the German bank-
ing community in co-operating
on payment systems. The
trouble started a few years ago
when Dr Eckart van Hoqven of
Deutsche Bank garnered sup-
port for a plan creating a
Europe-wide bank consortium to
be called Euro-Travellers;
Cheque International (BTd).

to reach a consensus on travel-
lers’ cheques. A series of re-
criminations followed, but the
apparent political outcome was
a strengthened voice for Herr
Wolfgang Starke, general man-
ager of the savings banks, and
a shrinking power base for Dr
van Hooven and the commer-
cial banks.

Herr Starke will become
company chairman with savings
banks and commercial banks
each taking a 40 per cent stake
and the co-operative ba n k s own-
ing 20 per cent A DM50m
capital injection is planned and
.the new company will consist
of the merged Eurocard and
Eurocheque systems, but no
travellers* cheques:

' Now the savings banks and
the co-operative banks have de-
cided to sell Am ex cheques.
Deutsche Bank, meanwhile,
plans to sell -Thomas Cook
cheques which carry two addi-
tional symbols — those of ETC
and of MasterCard. The search
for. a Cook-ETC cheque was
fraught with so many difficul-
ties that when the product was
finally launched on a go-it-alone
basis by Cook it looked fairly
confusing — three different sym-
bols on one cheque .

At Herr Starke’s office In
Bonn, the view of the savings
banks on German bank co-
operation was made clear: ** We
want to cooperate where we
can, but if we don’t like the
proposals, as in the travellers’
cheque, we will go our own
way.”

The savings banks have
already decided to instal 700
cash dispensers by the end of
this year, a much larger num-
ber than the commercial banks
are planning.

Cash dispensers reduce staff
costs, which as much needed by
savings banks employing several
cashiers per branch. Commer-
cial banks have only one cashier
per branch.

Bankers dose to the thanking
of the savings banks suggest
that although every attempt will
be -made to cooperate an cash
dispensers, cards and other
matters, the concept of one pay-
ment sy stem in West Germany
may break down in future.
There is some . resentment
among senior savings bank
executives at the predominant
position carved out by Dr ran
Hooven.

In Frankfurt, Ik* van Hooven
sits bade in his chair and
smiles: “Starke is going with
Am ex We are going with
Thomas Cook and there is a
common opinion among ' com-
mercial banks in favour - of
Cook."

The crucial point, says van
Hooven, is " whether we ca n be
united in the payments industry
over a common instrument- " His
hopes for the Eorotibeque card
as such an instrument are high.

Perhaps the one subject about
which ah bankers from Frank-
furt to Bonn can agree is their

dislike of the Visa effort to
penetrate Germany. The main
reason for this hostility is the
view that Visa cards represent
a. non-bank instrument which is
inflationary and could siphon
off precious' . personal funds
from bank accounts.

. Visa has failed to secure any
German bank as an Issuer of
its card, despite years of trying.
Instead, a staff of 75 Bank of
America employees in downtown
Frankfurt try to sell the card
through direct-mail campaigns.
B of A claims 50,000 cards in
circulation.

But Visa's biggest mistake
was its attempt to issue the
Bank of America-backed cards
through BMW, the German auto
manufacturer. The idea was to
tap the 60,000 BMW car owners
as a market and issue them
with plastic cards which had
both Visa and BMW on the
front

Germany's top bankers pulled
together on this matter and
conducted a subtle campaign to
block the BMW programme. As
a result the BMW name will
not appear on the cards and the
scheme looks likely to fade; at
present there are only a few
hundred cards out.

I

On only one occasion" did a
German banker extend an olive
branch publicly to Visa-
last November Herr Starke
approached Visa- president Dee
Hock at a conference In London
and offered to double - the
number of merchants accepting
the Visa card in Germany if
Hock would agree to stop trying
to issue the card through
German banks.

Mr Hock refused, saying this
would contradict Visa policy.
Some Visa-Starke discussions’
did ensue, but Herr Starke s&ys
it was “ very difficult to .co-

operate with Visa. They
very complicated people. :

“ We tried to come to an
agreement between the Vita
system and the German ban^in:
system," explains Herr Surki
“We don’t think that will b
possible”

Then, leaning forward ant
raising his voice, Herr Sfarki j
added: " I will say this to yoij |
on the record. This is my con- ,
viction: There is no possfcilfly
of dealing with Visa."

' In Frankfurt. Dr van Hooveni
says he is not worried about the!
prospect of a Visa incursion. \
** The BMW programme did not-:
worts.”

Mr Jinx Haywood. B of As
director of Visa (Germany*
said there is “ no question aboil
it— It. is a hostile market ou
there.” Mr Haywood said Visa
would become more aggressive,
but he wished to avoid “ becom-
ing a source of irritation” to
German banks.

Although he is new to the job,
Mr Haywood said he was con-
fident he could bring the B of A
operation out of loss — there has
been a capital expenditure of
more than 32m over the past two
years. “I’ll be quite candid
with you. I haven’t yet
developed a strategy. My
mission is to make a profit and
develop a marketing
programme.”

T4»e future of German pay-
ment systems thus looks to be a
colourful one. It will be three
to five years before a mass
system Is developed and
petition, can be expected
increase. The most vitj
question is. how the. savings
banks make use iff thfir newly
exercised power vis-a-vis the
other banks. The line between
co-operation and competition is
a thin one indee.

*■

i

> «

V

■ 7 ’■

ACCOUNTING

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H

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. , .J..

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^Fliianci^ Tm Weiinesday June 9 1982

WIST GERMAN BANKING AND FINANCE VH

vn

The authorities are set on reform of the Banking Law and in advance.each sector has begun to plead its case

■ 1 . ' ■ ? ■

Much lobbying precedes day of reckoning

I

I.

Bank tower (Hessische La ndesbank). and church
towers juxtaposed m Frankfiert

PROFILE: AUGUST VON F1NCK

Banker with a bent
for brewing

.HEBK August von /Fiack, one Pacellistrasse in a Volkswagen
-■ '.of the richest' men in West. Beetle. If the truth be told he
oany, sat under a tree on would have preferred neither to
estate near - Munich and. come to the bank nor to sit on
explained how ydu make a really hoards, but to stay on the land.
- good beer. . ‘ His passport' gave his profes-

As he talked with a. passion- sion(s) as “ farmer and banker”
“and knowledge 1 evidently based ' — and his heart belonged to the
. on long study of the. topic, one
■'point -above all became clear. It
‘was- not simply- that the recent
' acquisition by 'file von Finchs
rivia the family holding com-
■ pany Agricola Verwaltqngs-
^gesellschoft) -of a 90 pei* cent

-vr-jiipC, **

^ „ Germany,

: ^his estate
~~ '1 "pynlamedl

ST*
■J : "i r

'fa

former.

Still, the duties he Inherited
from his father, Wilhelm, in
1924, could not be avoided.
Wilhelm von Finch, who came
from Hesse, was one > of. '.the

legendary entrepreneurs of the

•'•“isfcj "Jtake in Munich’s LGwenbrau second IjaV of the 19tto century.

'^brewery made good financial
B (t .sense. Ldwenbrau after all owns
a- lot of property in Munich —
.West Germany’s “secret capital”
as it is often called. No, it was
•rather, that Herr von Finck is

fascinated by beer (the family
; : already owns the WUrzburger
— rwi' "HofibrMu inFnihconia),‘wants"to ... ....

' " turn out' the Hestpossibte pro- -SSffVsSSSSSlL W*

founding among other things
the insurance companies Allianz
Versicherung and Mhncbener
RUckversicherang (the latter to-
day thought to be the world’s
biggest reinsurance enterprise)
The. house of von Finck stUl
retains not only stakes in these
concerns— and in the Hermes

r : . sssajsssmtsisi **#^*.!» »■*

u 4 ' - ‘vap v Q indulge his hohhv ‘ ' --Nse besides. For example, it has

he

■ . _?3f. Tc fr “ nrrtw ”• niur Ahn— Hochtief, one of West Ger-

fisnle -onetwertUy liars . to® huUffirg compamw.

- : n£nibiuSr a( > du^ nrin^bcS ' ''**'*' private bank Men*.

glnek .(bmlnea. vnlyn. over
DMSbu) is not compelled to dis-

close its profits — but even if it
were the family would clearly
feel it bad form to- talk about
the matter “In our business
year 1981 we achieved a marked
increase In the profis from our
interest business,” August von
Finck remarked- almost, apolo-
getically as he presented the an-
nual report last month. Then,
brightening' up, he noted that
Herr Adolf Kracht, formerly

rJtterck, Fiack and Co. (senior
^ ''-partner Avgust yon Finck) the
■question is not only somewhat
•'-732 ■ -embarrassing 1 but. almost
; :.v irrelevant

~ What true value can one put,

-after all, on the 4.000 hectares
- “.(10,000 acres) of land in family

^ownership— much of it within
i half an hour’s drive of the
z « centre of Munich? If you could
-■ s ;jfto2d fiats or factories there

'-fcjo -the. value would be astronomi-

•:;w vttL But construction Is banned ‘ chaTnnan of fiTe Norddeutfiche
...there by law — and even if it Landesbank, had recently joined
, were not the von . FIncks Merck,. Finck — -a most welcome
'Wouldn't like it, however much development since “for my
cash it brought in. . - . brothers (there are three
1'jThe truth,- confirmed by an others) and myself there are,
evening at which both August, after .all, only ,24 -hours in a
feed ... 52, iand bis brother day."

Wilhelm, aged 54. were present, The assembled Press,
is.that.lha yon Fincks not only gathered in a room with stained
Have a tradition of wealth, glass windows .and decorated
They also have a; remarkably Tvitb antlers, made a few ritual
unostentatious style which they, efforts, .to extract more about
gained from the' father, August profits, then retreated into the

ccoun;^

.•d atcur». |

AO rM"io e l

ihiaWy |

.withih®

dcuafi 18 ^

Senior) ' .who. ..died in -1980 at
the ' age of Bl.

5 August -(senior) .-who collec-i
ted supervisory, board- posts on
tterprises of all descriptions
,ther as other men might col-
t stamps, used to arrive at the
in Munich’s \ elegant

garden. There, dose to. the von
Finck family church, the as-
sembled; company dined until a
.late hobr by candlelight while
Herr August discoursed 1 on
where you can eat well and in-
expensively near Munich — and
how you make really good beer!

&

,cc€-rSf- I
ric?- CJC jj |

nternat.^' ,
Vhonc'W-^ |
fjge 0^- |

533?^: !

PROFILE: WOLFGANG STARKE ^

Very much a man
on the move

<F THERE is a new spring
3n Herr Wolfgang Starke's
3step it is probably.- because
is confident of his newly
S^und power to influence the
3utore of West German
dtetaif banking.

S- Herr . Starke is general
yianag er of the - German
-Savings Bank Association
jrml very much a- man tra the .
■move* Before joining . the
-Bonn-based savings, bank,
^organisation in 1976, he
spent 18 years with Commerz-
bank. At the age of .46 he is
«pe of the most energetic
"participants in the continuing
debate over German payment
systems,

jjo many observers, the
Increasing dominant position
sBfc tihe ratings- banks, -corn-
ered to that of the commez^
^al or co-operative banks, .is
^rgeiy a result of -the work,
pf Herr Starke. He is credited
(with having helped; to per-
vnade the savings banks to
gull oat of. plans to form a
j|nrope*wlde consortium to
purchase: the; Thomas ■ Cook ^
travellers * cheque * "business
Tast year. Instead, the savings
banks, with more than 50 per

- cent of the private banking
customers in Germany, threw
their weight behind American
Express.

The feathers are still flying
in -German banking circles
and little love is lost between.
Herr Starke and some of his
Frankfurt-based .. colleagues.
But In political terms the
savings banks are on top.

‘With . 860 hanks and 17,000
brandies, the savings banks
' are in a formidable position
to influence the shape of the
new Common . Payment
Systems .- Company being
formed jointly by the savings,
commercial and co-operative
‘ banks. As if to underscore
. fids Influence; Herr Starke
will be aqipolrrtei chairman
. of- the "new: company . this
month.

“We walk an evolution,
not a revolution,’* .declared
. Herr -Starke . not ' long ago.
With the backing of German
savings .banks he means to
pursue an orderly schedule
of retail banking * develop*

. meets- : The style is
: deliberately 1 low-key: but’ no
.one., shonld ■ mistake the
reticence for lack of wlfl,

.THE THREAT, of legislative
reform which could both cramp
the . growth and “ aruficaliy "
distort the structure of com-
petition. hangs heavily over the-

German bansang industry. - -
- Although - the - commercial
banks, which feel that they could
oe the- maw losers from new
legislative initiatives, have been
able lo take advantage of the
Government’s political problems
in Bpnn and postpone until at
the earliest next year new laws,
the pressures for a fundamental
reform of the Banking Law
remain.

Both the regulatory agencies,
the Federal Banking Office and
the- Bundesbank (the central
bank) remain determined to
press ahead with proposals
aimed at requiring all banks to
submit consolidated accounts
against which the traditional
formulas for establishing
capital and liquidity ratios will
be measured.

At the same time, however,
the politically most powerful
banking group, the savings
banks, .has been waging a
spirited campaign in Bonn for
a new regulation which would
allow them to count the guaran-
tees of their owners, the local
authorities, as the equivalent of
up to 20 per cent of their equity
capital Since equity capital Is
one of the measures according to
which a bank can expand its
lending (the maximum limit is
that loans can be increased up
to 18 times equity capital and

reserves),, the. ‘implication of
such a step, would be a major
expansion of the lending
capacity of the. savhfes banks.
The 18 times rule is more com-
plicated than it appears since,
for L example. 2 loans to the
German public sector do not
need to be backed with equity.

But other banking groups are
estimating that a ■*' Bafhmg-
zuschlag ” for the savings banks !
of this sort would increase their
lending capacity by as much as 1
DM SObn. It is a prospect which
does not- appeal to the com-
mercial banks or the co-
operative banks (which already
enjoy a similar but not identical ;
privilege). The banking regu-
lators are also against it

When asked for their views!
about counting an owner’s
guarantee as if it were paid in
equity they are apt to quote
fondly former Finance Minister
Hans Mattfaoffer’s bon mot on
the subject-—” those who do not
have money should not be in.
banking.” But given the
current political constellation
there are few willing to pre-
dict that the savings banks*
campaign will ultimately fail.

The prospect of a boost for!'
the - savings banks is not the
only aspect of the current
debate over banking legislation
which worries other sectors of'
the industry.

It was after the coHapse of.
Bankhaus Herstatt in 1974 that
demands for banking reform '

became insistent Indeed in
the wake of the bank's failure
legislation - was introduced .
aimed at plugging some o f the
most obvious loopholes— for
example, in the regulation - of
foreign exchange ‘trading.

In the mid-1970s, however, the
range of issues addressed by
those seeking reform broadened
to a more general critique of
the power of the banking Indus-

Law reform

STEWART FLEMING

try. particularly the commercial
banking sector as a whole.
There were demands that the
banks should be forced to cut
their vast equity haktings in
major German companies, dis-
close wore fully how they vote
on behalf of shares of their ,
customers held in trust and
further restrict their participa-
tion on the supervisory boards
of companies.

The economic crisis of the
past two years and the fact that
because of their need to draw
on hidden reserves to boost
their earnings some of the big
banks have In any case dis-
posed of big stakes in the
largest (and therefore most
visible) public companies has
served to defuse this issue. .

The latest draft legislation.;
suggests that rather than
making wholesale disposals of
stakes in industry the banks
should tn future simply be
required to back such holdings
with their own equity capital

- But in the meantime more
technical issues relating to bank
regulation have come to the
forefront In the face of the
evidence of mounting inter-
national lending risks — the
catchwords Iran, Poland and
Argentina on the one hand, and
Bramff and Laker Airways on
the other sum up the range of
issues — the bank regulators
have been pressing harder and
harder for new laws. In part
the 'pressure is a reflection of
file acceptance by the central
bmiks of the major industrial
countries meeting under the
auspices of the BIS hi Basle
that consolidated accounts are
an essential foundation on which
to base file regulation of an
international bank.

In part too, however, it
reflects the longstanding con-
cern of the German bank - super-
visors that bank regulation in
West .Germany has not only
lagged behind the rapid growth
of- the German banking indus-
try’s international operations in
the late 1980s and 1970s but that
the banks have deliberately side-
stepped this regulatory frame-
work in order to allow then*
selves to expand so quickly.
Thus most of the big German

banks with international opera-
tions have subsidiaries in
Luxembourg outside the control
and the restrictions of- the
German banking law. v

In the middle of last year
the commercial and co-operative
banks agreed to submit statisti-
cal information but without
names of borrowers on a con-
solidated basis to the super-
visors. It emerged that 17 of
the 31 banks covered were not
complying with the German
banking regulations once the
iron-consolidated ■ subsidiaries
were brought in.

If 1 non-coixsolidated domestic
German subsidiaries such as
partially owned mortgage banks
are brought in, the degree to
which some banks are over-
geared according to the
eighteen times rule becomes
more marked. Indeed there are
even suggestions that 1 a bank
might prefer tb reduce sharply
its stake, in a .mortgage bask,
and therefore the papital buck-
ing, rather than consolidate on
a. pro rata basis.

The over-commitment of one
or two German banks to Poland
or other East Bloc countries in
particular provides one clue as
to why the supervisors in Ger-
many are anxious to have more
detailed information about the
lending of the institutions they
oversee. Is addition, . however,
the regulatory agencies are
clearly anxious to see the Ger-
man. banking industry boost

significantly the equity capital
supporting their business— one
which must, because of the
export orientation or the Ger-
man economy, continue to be
internationally directed.

Behind the argument, how-
ever, Hes the fundamental
philosophy that the regulatory
authorities are not there to
make judgments over individual
credits or country risks. That
is what the management is paid
for in the eyes of the super-
visors. There is clearly less
need for supervisors to -be
tempted into this role if they
are confident that the banks are
not just adequately but
generously supplied with
capital.

The emphasis on equity
capital base *nd fuller dis-
closure of information on lend-
ing leaves aside, however,
another area which has worried
the regulators, and rightly so,
namely the issue of maturity
transformation. The cost of
liquidity and the mismatching
of long-term loans and short-
term funds has been the source
of heavy losses for German
banks in the past two years.
The banks themselves have
learned from this painful ex-
perience. The regulators, how-
ever, are evidently addressing
the issue of whether they can
draw up guidelines which would
set limits to the extent to which
banks could enter into this sort
of mismatching. It is not clear
yet what action will be taken.

:«r. *-.-v *

selecting a specific
bank as a partner for your
international activities
requires sound reasoning:

1.B 1

typroviding90% of
all loans to the Dutch agri-
cultural sector, Rabobank
is the largest source of
credit to the domestic green
sector.And plays akey role
in agribusiness finance.

Of all Dutch exports 25%
consist of agricultural
products. The importance
of agribusiness for Dutch
foreign trade gives Rabo-
bank an extensive and
up-to-date knowledge of
international trade finance.

With total assets of
more than 1 lObillion Dutch
guilders (approx. US $ 45
billion) Rabobank ranks
among the 50 largest banks
in the world.

major European co-
operative banks. As a group
these banks have total
assets of US $ 360 billion
and 36,000 offices.

5

S

Additional strength is
derived from the member-
ship in the Unico Banking
Group, in which Rabobank
works tog:ether with 5 other

>o if you’re interested
in banking internationally,
we’d like to meet you.
And when we meet we’d
like to help.

2. More than 40% of all
Dutch savings are entrusted
to Rabobank.

3. One third of all

Dutch companies conduct
their financial business
through Rabobank.

And with 3,100 offices in
the Netherlands on-the-spot
services are available in
every part of the country.

Rembrandt country is Rabobank country. The country where traditions
of excellence continue to flourish.

Rabobsuik Nederfahd, International Division, CaffaarijnesingeX 30,
3511 <*B Utrecht, tlie^ietheiiands. Telex 40200.

Brandi Office Nbw fe-fc, 245 Park Avenue, New York, NY 10167,
Umt^5tatfisofAmerica. Telex 424337.

Representative Oj^Frankfiirt, Friedridi-Ebeit-Anlage 2-14, .
B- 6000 Fraikfuk am Mairii-, We^Germany v Tdejt 413873.

3

1

VIII

Hypo-Bank

royal client service is amiable

wherever and whenever

you need it.

Royal treatment is a Hypo-Bank service tradition that
dates back to 1835 when we were established in Munich
by royal proclamation by King Ludwig I of Bavaria

A tradition of going to great lengths -to satisfy client
requirements in all fields of banking and finance wher-
ever and whenever they are needed.

Backed by consolidated assets of more than DM 873
billion, we offer comprehensive commercial and invest-
ment banking services, ranging from trade and project
financing, foreign exchange and interbank money
dealing to syndicated loans, security trading and port-
folio management

Through our network of subsidiaries, branches in
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partnership in ABECOR, and a mobile team of banking
professionals, we offer services worldwide.

Fbrthe royal treatment your international business
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1, Angel Court, London EC2R 7HA, Tel.: 01-6001404,

Telex: 887199 HYPOBKG.

Head Office:

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D-8000 Munich 2

Tel.: (089) 2366-1 ___ _ _ ^

TX.: 05286525-27 bayehische hypoiheken- UNO wechsel-bank

akhengeseoschaft-

SCHRODER, MDNCHMEYER, HENGST

Superior craftsmanship
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Such qualifications distinguish
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Schroder; Munchmeya; Hengst
is one of Germany's leading
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International ntvestroentbankfitsL

SCHEDDER. MDNCHMEYER,
HENGST& CO,, BANK
Priedensstra6e6-10
D-6000 FrankfintamM&il
m(06192179-L 1x413756 smh

Financial Times Wednesday June 9 1982

WEST GERMAN BANKING AND FINANCE Vg

What amount to commerrial IOUs have become a popular means o
finance in West Germany: These;“certificates of indebtedness — -° r
Schuldscheindarlehen in German — are free of the normal statutory

restraints and therein lies their attraction for borrowers s

• ; . 1

Appeal of a loan channel |
free of supervision

THERE IS no officially
organised market, no legal
definition and therefore no
detailed statistics, but Schvld-
schcindarlehen — variously
translated as "certificates of
indebtedness ” or “ loans
against borrowers' notes" rep-
resent one of the most
important means of private and
public sector financing in the
Federal Republic.

According to estimates made
by Commerzbank such certifi-
cates of indebtedness outstand-
ing in 1980 totalled more than.
DM 400bn compared with a
total volume of - outstanding
issues in the West Gerxpan
bond market at the same time
of over DM 500bh. The fact
that no precise statistics exist
Is clearly one of the major
attractions for operators in this
sector of the capital market as
Schuldscheindarlehen offer an
unrivalled degree of secrecy.

Although this form of financ-
ing instrument has been used
in Germany for several decades
— at least since the 1920s for
public sector financing — the
importance of certificates of
indebtedness has greatly in-
creased in relation to bonds,
the traditional capital market
instrument, since the be ginning
of the 1960s.

Why have they become so
popular? According to a Com-
merzbank study of the German
capital market, Schuldschem-
darlehen offer borrowers “ lower
cost, easier adjustment of terms
to the individual needs of the
borrower, simpler procedure,
faster handling and more dis-
cretion, compared with the
issue of bonds."

Just as important they do not
need Government approval; nor
do they need admission to the
stock exchange.

Interest rates on loans against
borrowers' notes are normally
higher than the long-term rates
ruling in the bond market, but
the savings to be gained on the
costs of the transaction usually
make the Schuldscheindarfeben
a cheaper proposition for the
debtor.

Among the expense items
saved are Securities Tax, the
cost of printing bonds and a
prospectus and of admission to
the stock exchange, all costs
that are necessarily entailed in
a bonded loan issue. As the
Bundesbank spelled out in its
first survey of the Schuldschein-
darlehen market carried out
several years ago; “ Further
advantages for the borrower lie
in his greater freedom of move-
ment when raising capital— no
governmental permit for the
issue, no obligatory publicity,
individual framing of the terms;
less dependence on the general
state of the capital market; no
need to support bond prices.”

For the investor the attraction
lies chiefly in the fact that
interest rates on Schuldschein-
darlehen are somewhat higher
than on bonds and that the

NET BORROWING BY ALL AUTHORITIES

(DM bn)

1980

Loans against borrowers' notes +52.4 -

1981*
of which
Total Athqtr*
+76.4 +20.4

Securities + l- 1

- 0.9 - 0.6

Other - 0.9

- 0.4 - 0.1

Total +52.5

+75.0 +19.7

Of which raised abroad! +22.0

t Partly estimated

+24J) +. 1-0

loans are not subject to any
officially quoted once fluctua-
tions that would -lead to banks
having to write down the values
in their annual accounts. .

this last point has taken on
a new relevance in the last two
years as banks have been hit
hard by the book-losses they
have had to take under West
German accounting require-
ments on their bond portfolios
as a result of soaring interest
rates and crumbling bond
prices. As certificates of
indebtedness do not have a list-
ing with daffy fluctuating prices
they are not subject to depre-
dation.

What are SchifidscheSn*
darlehen? The Bundesbank
itself admitted in a survey car-
ried out several years ago that
" there is no dear and movers-
ally satisfactory definition of the
term * Schuldscheindarlehen
Broadly, however, certificates of
indebtedness represent large
short-term, medium-term or
long-term toons for which a
written loan agreement is signed
or debt acknowledgement is
issued.

The main difference between
a regular bank credit and a cer-
tificate of indebtedness is that
the certificate is negotiable and
therefore can be traded,. In tins
sense it resembles a securities
instrument

The fact til at Sduddschean-
darlehen are not quoted stock
exchange securities, however,
means that they are saleable
only within limits. A major
difference from bonds is that In
a legal sense they are loans and
not securities. “ The borrower’s
note," says the Bundesbank,
“ unlike bonds, is not needed for
assertion of the underlying
claims: it serves merely as pro-
bative evidence.”

Despite the ffzmtations on the
negotiabiffiy of certificates of
indebtedness, the fact that the
number and volume of loans
granted in tifis form has been
growing rapidly in recent years
means that an unofficial second-
ary market for them has deve-
loped. Major banks and a few
private bankers ore making a
market, according to Commerz-
bank, and certificates are traded
over-the-counter orfiy by the

hsTifcs.

Trading prices are established
by supply and demand based on
market yields at the time of
deeding with a tnirrfTninw trading
amount of DM 100,000. Usual
amounts, however, are DM lm
and above.

An important additional
attraction for non-German resi-
dents is that under Gram an law
interest income from Schuld-
scheindarl ehen is not subject to
German withholding tax.

The moan borrowers in the
Schtddschem market are the
public authorities, domestic pri-
vate banks, domestic private
corporations and foreign bor-
rowers. On the investor side
the main holders of certificates
of indebtedness are tire insur-
ance companies the banks,
but in recent years they have
been joined by foreign investors,
major ind ustria l concerns and
occasionally private investors.
The private lender is in most
cases rated out of the market,
however, because of the large
size of tire individual trans-
actions involved.

By far tire most important
single borrower in the form of
Schuldscheindarlehen is the
West German state in its various
forms. Of net borrowing in the
market by the central, regional
and local authorities of DM 75bn
last year, some DM 76.4bn was
accounted for by loans against
borrowers’ notes. The dis-
crepancy of DM 1.4bn was
accounted for by the actual fall
in the volume erf net borrowing
in the form of securities and
other credit instruments. In
1980 there was a similar picture
with Sdiuldscheindarieben pro-
viding DM 52L4bn of net
borrowing of DM 52.5bn.

The g rowth overall of the
market for certificates of -
indebtedness since tire begin-
ning of tire 1960s is closely
associated with the . rapid
expansion, of state indebtedness.
Exact figures have not been,
published but it is understood
that of total state indebtedness
of DM 545bn at tire end of 1981,
around DM 400bn was in the
form of Sdnddschedndarieihcm
Public financing through cer-
tificates of indebtedness has
risen quickly in the last few
years, more than, doubling
since . 1976. .

Loans against borrowers
notes have also bron the

financing instrument favourea

by Bonn in its search for new
sources of funds abroad
chiefly in Saudi Arabia— during
the period that the country was
running a huge current account
deficit. The need to finance this
deficit also led the Government
virtually to do away with
restrictiaas on the sale of
Schuldscheindarlehen to non-
residents, opening up the sale
of short-term certificates.

As far as the Federal Govern-
ment the state governments
and the Federal Railways and
Post Office are concerned, tif

minim mm amounts raised &

single loans are usually DM
These borrowers negotiate loa-p
by announcing the term?*'- *
yields and maturities — at whO
they are willing to boi
capital in the market or
responding to direct denial
from the banks. ^

Schuldscheindarlehen play a
less important role in corporate
financing than in the funding
of the public sector and in 19S0
it was estimated that loans ."

against borrowers’ notes £■

accounted for no more than 10 C'"

per cent of total long-term bank
loans to enterprises. The possi-
bflity of raising debt in this
form is also in practice limited
to large concerns.

The insurance industry plays
a major role as lender in the
Schuldschein market with the
result that requirements raised
by the insurance companies
often, play a major role in
judging the eligibility of cor-
porations for. certificates of
indebtedness.

The maturity of a Schuld-
scheindarlehen can be for any
period agreed by the contract- \:V-
ins parties, and although loans
against borrowers’ notes started ?ri'
out more as long-term financing / v
instruments they are now V-'
commonly used as a way of -
raising short-term debt too. i, '_

Interest is payable at fixed , ?>
rates over the entire life of a
certificate from the pay-out -
date and will be determined^:; 1 ..
by tiie state of the market at£i*
the time of the deal and thef-
standing of the borrower. The
yield is generally above the
yield obtainable on bonds. .
Public sector certificates are ' ^
usually issued at fixed interest . 4
rates until maturity, but there " ■

are sometimes clauses for re-
negotiating interest rates after
so many years. Redemption
usually takes place in total at
the maturity of a loan, but this
can also be arranged in other
ways such as instalments.

In general loan agreements .
provide tire crecHtor with the
power of attorney to assign the.
loan in part or completely to
third parties, although clauses
are sometimes included which
require the borrower’s consent
before transfer.

Kevin Done

j

Euromarkets profile reflects mix

of investment views

“THE PROFILE of - West
German banks in the Euro-
credit market can be summed
up in one word: non-existent."

This was the view of one
major London-based banker, on
the rather low profile adopted
by German banks in the inter-
national syndicated loan market
The reasons for their lack of
activity involve the peculiar
growth of German banks in this
sector, largely through sub-
sidiaries in Luxembourg.

West German banks originally
set up these Luxembourg opera-
tions in order to channel Euro-
credit business, but the tighter
interest margins and lower
yields of recent years have dis-
couraged them from taking on
much new business.

The banks have also found a
regulatory headache in the move
toward consolidated accounts in
West Germany, thus bringing
the Luxembourg loans activity
into the fall bank report The
idea of running business out of
Luxembourg was at least partly
to avoid some of the Bundes-
bank's requirements, but this
has not worked.

Most of tiie involvement by
German banks has been in
Eastern Europe and the loans
from Dresdner Bank, Commerz-
bank and Deutsche Bank to
Poland have been well-
publicised. Deutsche Bank
dearly made the best provisions.

Otherwise, German banks
stick to trade-related credits,
and have completed some busi-
ness with Brazilian borrowers.
Hie trend toward slightly higher
margins in tire case of some
borrowers has lured German -
banks back; an example of this
.was Deutsche Bank's Involve-

ment in the recent credit for
Greece, which carried reason-
ably generous margins.

When it comes to tire Euro-
bond market, however. West
German banks are far less shy.
The Euro D-Mark bond market
Is a thriving area, and new issue
volume over the past few
months has been at least
DM Ibn per four-week period.

Deutsche Bank is the biggest
of the market-makers in Frank-
furt; ft operates a significant
Eurodollar braid trading desk as

World image

ALAN FRIEDMAN

well as a dollar new issue *mmy
Its Euro D-Mark presence makes
it the established house for
most supranational D-Mark
borrowers such as the World
Bank and the European Invest-
ment Bank.

Dresdner Bank, DG Bank;
Berliner Handeis-und Frank-
furter Bank, Westdeutsdre
Landesbank, Commerzbank and
Bayerische Vereinsbank are
other banks with a significant
presence in the Euro D-Mark
braid market.

Unlike tire Eurodollar bond
market, which is virtually un-
regulated the Euro D-Mark
sector does have a formal issue
calendar, which is agreed at
meetings held generally once &
month. ‘

At these meetings a number
of new Issue managers discuss

the planned borrowings they
have in mind and try to agree
on amounts and dates of
gsufc Some of the Bavarian
banks, because they are not as
mainstream in the bond market
as the Frankfurt "big bra"
may benefit from these deliber-
ations even though theTare
not present. Bayerische Landed
bant may be given preferencf
for example, - because the mS
mgs of the West Gennai efi
tal Markets Sub-committee
under the watchful ey*ToF '
Bundesbank, constants sJat!
be fcir to all new Su| e ^
agers.

Although tiie Bundesbank in

May abolished the speciS
Lombard rate of interest
this encouraged the bond mar.
ket, the Euro D-Mark bond sec
tor cannot escape the influence
of the New York market S
Mark interest rates may have
a six-point differential from
dollar rates (this has been the
norm during the' first few
months of = 1982), but the ebb
and flow of the market will
follow Wall Street closely.

The quality of D-Mark bond
borrowers varies from the
goldm reputation of Philip
Morris to . the greater risk of
Banrural, Mexico’s agricultural
development bank. When the
two borrowers came to market
a few weeks . ago, tiie differ-
ence was .made., patently dear:
Philip Morris carried a coupon
of Si per cent, then the low,
-while Banrural was-priced at. a
discount with a lOf per ' cent
coupon. ■

The Banrural fcaper yielded
more than 250- basis points (2f
per cent) . above the Philip
Morris, : the ^widest yield.

i

deferential seen in a long fc
bonds hi
™*»t. Who bought
Banrural paper? Th„

g®* 3“dS

sn.rsSt -a*

name is not the best ^
j^li^r names are *

foreign ..Purchased

or in^st

their porb °h

D-marteSrt,^- Portfolio
sUghti?

frSuri^

ranee. The tto wee «s m ,

factors whiSwnPf 11 are t
exert a H continue

tte D-^A^J^flueneS

"lationSta “ or - as will t

Ge ™®mnwi£ , the W,
Healthy S*® ^ doll
tores and tra

surplus will heto^? 1 ace ™

"A totS »ark

^^esefaSS ^ cor
budget deficit feto ^ *S ;er ”'
f ^any banker? bs

far has not been hut

affluence on toe bo^7 adv -

In an ideal worto tS d 5^
mark bond secS? ? e Eur o
ttoue to enjoy deciin^ 011 !^ Cf
rates, buoyS inter ‘

JHe new si ‘

few months. K® th , e Vi

«“™«eee :

fr.

^Financial Tims Wednesday .Tune 9 19S2

THE FRENCH ECONOMY

’s unpalatable choices

THERE is proud aad
obstinate strea to M Mitter-
rand’s charact'- He is not a
man who likeso be seen to be
acting under res sure — least
of all wben > Socialist Presi-
dent of FraiO that pressure
comes from the international
currency m*ets.

But the pie on which there
has been .‘haemorrhaging of
Prance's o reign exchange
reserves h greatly limited bis
room for man oeuvre. From
PFr 42bn*efore tlie Socialists
took offic ut May last year, the
Bank ofPrance's disposable
foreign (Change holdings had
fallen toust over PFr 16bn by
May 19. Dealers reckon that
. the Ban of France paid out at
least afurther FFr 6bn last
week Mntervenmg in defence
of the 'anc. particularly when
it can: under heavy pressure
on Thsday and Friday.

Nofcly expects the President
to azeunce a devaluation of
.the *ench franc within the
Eurtfan Monetary System
wheiie holds the second Press
confence of his Presidency
tod? But the occasion will be
wat-cd for indications of the
stalisation measures that will
he -eded if there are not to be
rented devaluations of the
fr£ in the future (the first
w; in October last year) and
h^e also for the degree of
Face’s commitment to remain
woin a more stable EMS
stem.

;Trench public opinion is at
list in part prepared for the
iQOunceraent of austerity
£a£ures. An opinion poll
iblished at the weekend
towed that 58 per cent would
pparently welcome austerity —
finding the cynics interpret
.s meaning that they would
welcome it for the remaining
i2 per cent of the population:
the French will not lightly g*ve
up the still rising If ring stan-
dards that they continue to en-

Fr. Franc Slllton

By David Housego in Paris

i

1981

1982

2-3

2-4

2-5

2-6

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600

500

400

300

200

100

o

1981

1982

1981

1982

1981

1982

Bob Hutchison

t.

V.

^Official forecasts are that
il [inflation -adjusted] in-
p, nes will go up 2.2 per cent
Ui s year after a similar in-
e> 'ase in 1981. Even this dofS
ail fully reflect the astonishing
per cent increase in waies
on an annual basis that seem-
ingly took place in the frst
quarter.

M Pierre Mauroy, the Pime
Minister, who until recent!/ has
been an advocate of expan-
sionist policies, indicated some

days a&o that this could not
continue when he spoke of the
need ** to put a brake " on wage
and price increases. M Jacques
Delore, the Finance Minister,
has ilso again been preaching
the need to cut back on social
expenditures — warning that
everybody must be prepared for
sacrifices and that it was not
yet time for “gathering the
cherries.” The pro-Sociallst
CFDT union has declared its
support for greater “ realism ”
and “ rigour."

' Almost a lone voice against
austerity— with Its implication
of a cut m living standards —
has been the Commuoist Party
and the Communist-led CGT
trade union Mhe largest in the
country). Others will no doubt
add their voice to the chorus of
complaint if they find tfw shoe
is pinching them. But at least
the belief that the party is over
gives M Mitterrand some lee-
way in announcing unpalatable
changes.

An equally helpful factor is

the concluding declaration of
the Versailles economic sum-
mit. This linked the inter-
national monetary and ex-
change rate stability for which
France is anxious to a greater
convergence ‘of economic per-
formance among the major in-
dustrialised slates. In other
words M Mitterrand can puL the
medicine he proposes in the
context of internationally
agreed goals.

For the pressures for a
“change in gear” in economic
policy do not only come from .
the weakness of the franc. They
also stem from the related fact
that France is now having to
face up xo the painful conse-
quences of -having pursued last
year an expansionary economic
policy at a time when her
major trading partners were
deflating. The unexpected
extent to which France is out
of step with other industrial-
ised nations has badly thrown
out the Government's economic
calculations.

Thus the French inflation
rate of 13 per cent during the
first four months of the year is
a marginal improvement on
last year but way above the

single digit figures being
achieved in the U.S., West
Germany and Britain.

France's widening trade
deficit reached a record
FFr 10-2bn in April as a result
of the slowdown in exports due
to the world recession and an
increase in imports sucked in
by the continued bouyancy of
French consumer demand. The
Government claims its EEC
partners have gained on aver-
age the equivalent to 0-2 per
cent a year of real GNP through
the boost to imports caused by
the reflation of the French
economy. The sharpest gain has
been made by West Germany.

The sluggishness of exports
has in turn been a major factor
behind the loss of momentum
of the French economy. Real
GNP actually fell by 0.1 per
cent in the first quarter of the
year and is now only expected
to rise by 2 per cent in 1982.
This compared with Che 3.3 per
cent forecast estimated at the
time when this year's re flat ion-
ary budget was being prepared.

As a result of slower growth,
tax receipts will be down thus
further swelling the budget
deficit.. A planned deficit of
FFr 95bn for 1982 fas compared
with FFr 50bn in 1980 and
FFr 72 bn in 1981) is now
expected to reach FFr 120bn.
This is quite apart from an
anticipated deficit in the
independently administered
unemployment benefit fund
fUNEDIC) of FFr 37bn by the
end of 1983 and a heavy short-
fall in the social security fund.

It is an extraordinary fact of
Socialist France that notwith-
standing what his ministers say
M Mitterrand retains an almost
monarchical power of decision
and that his exact intentions
over a shift in economic policy
remain a mystery.

He certainly had no wish to
take unpalatable decisions at
this stage in his administration.
His strategy was to postpone
austerity measures over budget
expenditure or wages until after
the municipal elections next
spring. M Mitterrand wanted to*
use these (as did the Com-
munists) to reinforce his party's
local electoral base.

But he has always been
sensitive to accusations of
Socialist mismanagement of the
economy. M Mitterrand is

also sensitive to the damage to
France's prestige from ' the
continuing weakness of the
franc, the draining of the
reserves, and the danger of
repeated devaluations.

A major priority continues to
be to maintain, the. impetus of
Socialist reforms and aboye all*
of long-tertn' investment through
the newly nationalised indus-
tries on which the Socialists pin
their hopes for a . restructuring

and modernisation of. French
industry.

But he also wants- to restore
order to the ' public' finances,
and curb inflation — -though with-
out the deflationary policies of
monetary and., fiscal, restraint
employed by former Prime Min-
ister M Rayinodd Barre (which
he and his 'Socialist Tarty de-
nounced) but which, still look
the only way of achieving those
particular . objectives. . Among
such irreconcilable* ■ K Mitter-
rand's options are limited: .

• He has already announced
that the. T>udget deficit next
year is tp be held to. 3 per cent-
of GNP. ;Tighter expenditure
limits are being .imposed on
social welfare ministries.

Indubitably . .the foreign ex-
change markers_want.to.hear. of

expenditure cutbacks that go
further than the bulk of the
Socialist Party are prepared
for.

• There is strong support
within the Socialist Party for
a price freeze and this Is equally
popular with the public M large
as reflected in the opinion polls.
M Dolors has opposed it because
(unless industry was excluded)
it would further squeeze already
depressed company profit mar-
gins. A -prices freeze would
almost certainly be linked to a
tougher wage restraint policy.

• The President is under strong
pressure from the Mims try of
Finance to raise employee , con-
tributions to the social security
and unemployment benefit

- funds. Civil servants are cur-
rently exempt from contributing
to the unemployment fund —
a privilege they are likely ro
lose In the name of “ solidarity.*’

The risk of not taking such
measures now is that M Mitter-
rand could be forced into a
moire humiliating U-turn later
on and into further devalu-
ations. Such a prospect is
damaging to him in France, qjid
damaging also to his hopes of
closer European collaboration
through a strengthened EMS
and closer relations with West
Germany.

Unemployment

Getting beyond glib talk

By William Rodgers, MP

STANDING in the parlour Of'
the Victorian terrace- -house I
gave the obvious reply. “ If the
economy grows - with more
■investment, there win be more
jobs here.” “Oh no„ : there
won't,” was the response, "It
would just mean more overtime
for me."

He. politician’s glib prescrip-
tion bounced off -the -man who
really knew. At the wire-works
in Warrington, jobs lost’ would,
never be replaced. .

To. those of us who grew; up
in the Beveridge era, it is
extraordinary. Full- employ-
ment was the axiom of the free
society. Now we are learning
to live with 3m men and women
on the- dole. A Conservative
Prime Minister can even tfream
of - winning - an. election with
12.4 per cent' of the workforce
without jobs.;.r ' > ■

Is it aH Britain’s fault, again
— low productivity, bad indus 1
trial relations,' the' absence of

No message of hope has
reached Warrington
from Versailles ... we
have begun to ask if
work is the normal state

innovation? Or can we take
comfort that Belgium is doing
worse than us. . and even the .
Japanese have problems?

Tbe truth is many-layered. A
more expansionary policy
coupled with special employ-
ment measures might put 1m
men and women back into jobs
within two years, with further,
improvement after that. The
shock of the present figures
might finally ’ persuade the
cynics that an incomes policy
alone can keep both' unem-
ployment and inflation down.

But there is unease. Britain’s
own problem rests on the fur-
ther crisis of a world recession
and no message of hope has
readied Warrington from Ver-
sailles. Then- there is the micro-
chip, the spectre that casts its*
shadow over future generations.
Invented by man; its extended:
family of technology threatens
to make man redundant.

Giles Merritt's racy account of

the - World- -Out of- - Work
(Coffins, J2B0), gallops through
these problems. We learn that,
-in Europe as a whole, steel, tex- -
tiles, cars- and ^shipbuilding are '
in decline that to be down
and out in Lorraine is just as
depressing as in . Corby, or
KrefekL "Except in the acting
profession ” be says, "work is
the porinal state;” ...

But work is what is missing
for' many .of those- who. would .
choose.it:

-So we'have'bfegim toask our-
selves Whether ' work should be
the normal- state at all. Is it
not better that we -should be
trained for "leisure, with only
.our middle years, devoted . to
earning? If work-sharing
would spread the opportunities
on -a .weekly ■ basis, . why not
worksharing over a life-time? .
- The, jargon’ of ' the Left ' has
already- accdnpnbdated to' the*
change, pushing the .work ethic '
back to its origins -in religion
and the rise of capitalism. To
refer to anyone as .unemployed ;
is to cast a stone: Let them
instead be Known as “ unwaged.”

But. public perceptions of
unemployment no longer
require a euphemism -to hide
the’ . affliction of tbe victim.
There is no dishonour in being
without a job.

The graduate sons - and
daughters of middle-class
parents may as easily draw the
dole as first-generation black
citizens, in Brixton. Their
longer-term prospects are better,
but for a while the experience
is shared. The middle-aged,. un-
skilled manual worker finds it
hard to get another job, but so
does tbe craftsman, school
teacher and the- offiee derk.

Regional variations in Britain
—as in Italy and ■ France —
remain as marked as ever.
Better to be looking for work
in Newbury than Stockton-on-
Tees. But even in London, once
a haven for those in search of
jobs, unemployment is - now-
acute, as Ken Livingstone
reminds us with the figures he
mounts on County Hall.

. But- the mood of the country’
remains difficult to judge". Un-
empfc-smem currently cranes
top of the issues that matter
most 'to fhe electors. Anxiety is
strong that jobless youngsters
in the inner cities will turn
from frustration to violence and

institutions. At srane I"
there is what Giles Merri ■

"a Critical threshold" to be ;

-SFiet. and ££

laigS rally that Britain has

latiriy' seen was organised b>

the Peace Movement, and wa.
not about the unemployed. Ana.

as 'Giles . Memtt ;

the phenomenon in Britain is
the rise; in politics of the mode
ate centre-Left.

The man from tiio Wamngtrm ,
wireworks has a shrewd sense
of how the system works. He -
will not vote to take Britain out
of the Common Market, renv j
dious Brussels may be, but no-
one would gratuitously add -an- ,
other lm to the dole queues, rie «
will not vote, either, for a siege .
economy that would freeze Bn-

Britain cannot be an
oasis of employment in
a world out of work. But
it could be more
concerned to make the
desert bloom again.

tain out of world markets and
slow the pace of inescapable
change.

But neither is he convinced
that the growth of the money
supply and the size of the Pub-
lic Sector Borrowing Require-
ment are the stuff of which pros-
perity is made. In his heart
there is a middle way, special
measures for the young and the
long-term unemployed, moder-
ate expansion .with pay re-
straints and a vigilant watch on
prices. .

On top. there is training for
his children, so their higher
skills will fit those jobs which
are available in the anxious
years ahead.

Britain cannot be an oasis
of employment in a world still
out of work. But it could be
much less parched and mare
deeply concerned about how to
make the desert bloom again.

- I

WUhcn f lodgers ia SOP MP for
Toessidt. Stockton.

Letters to the Editor

Inflation accounting: confusion confounded

A regime for the

From Dr J. Ginorti

Sir. — Regarding our corres-
pondence column if (June 2)
headed “ Infl ation " accounting,
cash flow and the Big 4," the
lucid first letter fom Professor
.ISyddelton discusing the essen-
tial differences beweea general
price inflation and specific
price movement: is somewhat
overshadowed b the two suc-
ceding letters if which confu-
sion is totally onfounded.

Professor Vtood does not
a pear familiar with the excel-
lent work undetaken by Profes-
sor Baxter an others describ-
ing in great drail tbe strengths
and weaknesse of various forms
of cash flo.' and inflation
accounting, nr with the litera-
ture on the lifferent measure-
ments to theJK of gearing, rate
return and nvestment on the
Continent ad in Japan. Worst
of all. howrer. both Professor
Wood and ?r Clayton appear to
be greatly onfused on measure-
ments of ales of return and
profitability

While te absolute numbers
of bank posts may have been
growing t'rger. with balance-
sheets bosted both by UK in-
flation an sterling depreciation,
most hnk profit margjn
measure in recent years have
shown a adverse trend. Aver-
age cw of funds has been
tending to rise considerably
faster ban average yield on
funds-hence the banks' assault
on tfe building societies-—
while operating costs have
iende ; to rise considerably
faste.'than commission income.
As a'esult of inadequate profit-
abiliy, capital ratios have been
erot'ng steaditv in recent years
andbave only been maintained
by ery considerable fund rais-
ing exercises, with all the
clerere recently issuing loan
cajfol on a grand scale. More-
ovr ratios of had debt provi-
sion to advance, have been
dreriorating while risk has
prettily been increasing. Indeed
ft had debts and. capital
aleqtiacy it could well be argued
tiat the banks have needed
orery ounce of tax concession,
.nd if anything have been far
■qd generous to both staff and
:hareholders. The tendency to
compensate for inadequate
profitability by periodic rights

issues, which then go to increase
dividends has characterised
many other UK companies, in-
cluding in the financial sector
for example the composite in-
surance companies.

Mr Clayton seems to have
become highly confused in his
discussion of net assets over the
distinction between distribut-
able and non-dlstribu table
profits discussed at length in
the Sandilands report. For a
significant part of The banks’
growth in net assets will be
attributable to property revalua-
tions. which are patently only-
distributable in the event of a
sale. The remainder of the net
assets, the accumulated reten-
tions and reserves should also
be reduced, by RPI adjustment
to some constant purchasing
power parity which would
deflate them accordingly.

Specifically what Mr Clayton
appears to have done is to take
the Big 4 current cost net assets
of fS^tbn in 1981 and f7.2bn in
1980. The difference plus divi-
dends and special levy totals
Il.tibn, which he calls the
bank's CCA profit “on the
objective net assets basis.'* But
in these calculations, ignoring
growth since 1969, he has sub-
tracted 1981 net assets in 1981
Is from 1980 assets in 1980 £s,
whereas the “ real ” increase
requires the 1980 figures re-
stated in 1981 Is. Such 'a re-
statement produces “ CCA
profits net — assets basis.” of
£816m. much closer t«» the
banks'- published SSAP 16
profits of £69l)ni. considerably
lower than historic cost profits.

It Is perhaps worth remind-
ing readers that full current
purchasing power adjustments
to clearing banks' profits in the
early 1970s painted such a
devastating picture of banks*
true - profitability rhar the
clearers were very concerned
at the implications of CPP.
(Dr.) John Gioariis,

Quilter Gnodison,

■Garrorrf House.

31-45 Gresham Street EC2.

From the Vice-President*
Association of Certified
Accountants ■

Sir.— Mr Jack Clayton (June
2) should stick to his last. If,

as aa accountant, he does not
approve of current cost account-
ing. he has every right to
represent his viewpoint within
his profession and his institute
is providing him with a platform
for so doing on Judy 29.

In straying into bank
economics, bis arguments lack
substance and his own idiosyn-
cratic approach to measurement
of bank profits can only cause
confusion. Surely he does not
expect readers to believe that
an unrealised surplus on the
revaluation of fixed assets
should be regarded as part of
the profits of the year.

In granting stock relief, the
UK tax system assists manu-
facturing and commercial
businesses to protect their
capital infrastructure in
inflationary times. In practice,
no corresponding relief is
available to the banks so that
the business structure can only
be maintained from a basis of
higher historical cost profits
with significant retentions. At
a time when the market
capitalisation of bonks Is little
over half their net asset values,
how can it seriously be
contended that profits are
excessive?

Your correspondent fails to
acknowledge that the selective
taxation of offshore petroleum
and TV advertising was imposed
io counteract excessive profits
arising from monopoly rights
granted by government. The
imposition of a levy on the
banks was not based on profits,
bore no relation to the-
individuat banks’ ability to pay.
and did not recognise that the
level of hank profits was

subject to competitive forces.

If the case for rhe levy rested
on the benefits to the banks of
high interest rates that arose
from rhe economic policies of
the day, would he .be ‘so
vociferous in arguing in equity
that relief should be provided
when the converse situation of
Jow. interest rates applies?

An allegation of "complicity
in the enormous tax fiddle on '
behalf of the banks" can only,
serve to bring the accountancy
profession into disrepute.

F. E. Bleasdale.

29 Lincoln's Inn Fields. H*C2

oceans

From Mr P. Furr

Sir.— Your editorial "A re-
gime for the oceans" (June 1)
is both timely and .forceful. A
reminder of the wide scope of
the convention and of the im-
portance of the agreements
reached on all matters other
than deep sea mining is much
needed.

In the longer term, few doubt
that deep ocean minerals will
form a valuable part of the
earth's resources. Any real and
lasting worldwide shortage of
any of the metals will not, how-
ever, arise before the next
century. (Temporary interrup-
tions io supplies from existing
sources may. of course, produce
temporary shortages at any
time.)

Difficult as economic fore-
casting undoubtedly is. -there
are few authorities who now
confidently predict an effective
demand for the nodule metals
which would justify nodule
mining on economic grounds
alone much before the end of
this century- The resumption of
economic growth at the rates to
which the developed countries
became accustomed in tbe
1960s continues to elude us. -and
forecasts of demand for base-
metals continue to be revised
downwards.

In the light of recent events,
it is hard to conceive that iso-
lated and potentially vulner-
able marine outposts can con-
tribute significantly to security
of supply of the strategic
metals cobalt and manganese —
except in The context of agreed
international law.

For the rest of this century,
it is most improbable that there
will be any limitless bonanza
to be tapped for the profit of
either north or south, and
Third World countries, in
particular, need to recognise
this.

The textile
industry

From the Chairman .

Textile Industry Support
Campcirrn.

Sir.— Your report (June 4)
on Hong Kong's textile industry
highlights a very important
point

It adds weight to our argu-
ment that an 'industry's sur-

vival depends far more on lh**
environment in which it oper-
ates than it -dots on the
machinery wrth which it pro-
duces its goods.

Last year saw some of the
UK's most modern textile
plants close down because of
an alien environment based on
a polio* of liberal imports.
Hong Kong is squealing before
it is hurt but its message that

investment is useless without
protection is very pertinent
and timely. Let us hope that it
rouses our sleepy Whitehall'
mandarins from their slumbers
before Britain's fourth largest
industry disappears forever.
John C. Bridge.

Oldham and Dvftrkt Textile
Employers' Association,
Thonultffe,

115, Windsor Food, Oldham,

In everyone's long term
interest, the rights of the ocean
mining consortia must be recog-
nised: without the consortia the
resources will never be devel-
oped. Equally, certainly, few
will care to risk investing in
ocean . mining outside the
framework of international law.

The immediate importance of
the convention, covering the
wider aspects of the law of the
sea. is far too great for it to
be allowed to founder, on the
single issue of ocean mining.
This Is z longer term problem.

P. J. Farr- " -

O. W. Roskill Industrial
Consultants.

2, Ckrpham Road, SW9.

... I

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• V

and Market*

Financial Time* Wednesdy June 9 19SZ

UK COMPANY NEWS

Bass profits fall £8.4m
but interim increased

28 J reetal April
f® : 1 *®. taxairfe profits of brew-
entries and leisure group
Bass fen by £S.4m to £43.1m.

S2iS^. ,nc r eajied (from £840. 6m to
for the period, -but the
directors explain Hhat the
pressure on consumer spending,
tne severe winter weather and
SP _J®dustnal dispute in Bass
North, have depressed sales by
volume.

interim dividend, how-
ever. is lifted from 2.53p tD 2.66p
net per 25p share.

The directors say that, historic-
ally, a greater proportion of
group profit has been earned in
the second period of the year
and, as reported at the annual
meeting, the effect of consolidat-
es the former Coral activities,
in particular Pontin's, while
decreasing results for the 28
weeks, will increase the propor-
tion of profits earned in the
second period.

For the whole of the 1980-81
year sales amounted to £1.7bn
and the pre-tax surplus was
£133.2m. The dividend total was
9.46p.

Sales and trading profits —
£S7.1m (£62. 5m) — for the 28

weeks were split as to: brewing
and drinks £734. 8m (£717.8ra)
and £60. 6m (£63m): leisure
£2 13m (£l22.8m) and £3.5m loss
(£0.5m loss).

Coral sales and trading for the

HIGHLIGHTS

Today Lex looks at tjie preliminary money supply data for

banking in May which shows a li per cent rise in sterling M3.
Tt then turns to examine the Midland Bank's decision to raise
£100ra through the issue of a subordinated unsecured loan stock
2002/07. The stock is issued at £98.35 per cent and will carry a
14 per cent coupon. The column goes on to consider the recent
behaviour of equities which are at or near, all time highs in many
sectors. Finally the column discusses the interim results from
Bass which were disappointing with taxable profit sliding from
£51.5m to £43.1m on turnover up from £840. 6 ra to £947.Sm for
the 28 weeks to April ft), with a jump in the trading loss from
leisure.

first quarter of 1981. being pre-
acquisition, are not included in
comparative figures, directors
point out.

Trading surplus for the 28
weeks was struck after deprecia-
tion amounting to £Z7.7ra against
£24. 6m, a provision of £1.3m
(£1.5m) for employee share
ownership scheme, and included
a £4.9m (£0.9m) surplus on the
disposal of fixed assets, invest-
ments and subsidiaries.

Pre-tax ■ profits were after
borrowing costs, up from £llm
to £14ra, which was increased
by the inclusion of 28 weeks
(17 weeks) interest on former
Coral borrowings and overall
higher average borrowing levels.

- After tax, r 12.9m (£i3.5m>,
minority interests, £0.4m
t£0.5m) and preference dividend
payments of £0.2m (same), the
available balance came through
down £7.7 m to £29.6m.

Ordinary- . dividends will
absorb £8.6m, compared with
£S.lm, leaving £21m (£29 .2m)
retained.

Stated earnings per share are
given as 9-2p. against 12.4p.

In December the directors
said that capital expenditure of
£145m was authorised for the
current year. During the 28
weeks £59.7m was spent, com-
pared with £01.6rn last time.

See Lex

Premier Oilfields expands 53%

TAXABLE PROFITS of Premier
Consolidated Oilfields, an oil and
gas exploration company, advan-
ced by 53 per cent, from £1.3m
to £2m, for the year ended
March 31. 1982 on total revenue
£1.52m ahead at £5.21m.

Although no dividend is re-
commended, as the group is
continuing to follow a policy of
reinvesting earnings into further
exploration with a view to
increasing its capital value, a
one-for-ten scrip issue is again
proposed.

In describing the results as
" satisfactory ” Mr Roland
Shaw, the chairman, points out
that in a year of falling oil
prices the group's sales of oil
and gas improved from £2.64m
to £3.02m — an increase of 14.5
per cent.

He adds that by increasing
the group's activities as an
operator both- in the North Sea
and in the U.S. its operating
charges showed an improvement
from £225.000 to £418,000.

Total revenue also included
'dividend and other income of
£1.74m l £776,000), miscellaneous
income of £34,000 (£17,000) and
a profit from sales of fixed

- assets and investments totalling
£25,000 (£29.000). It also was
after taking account of a loss
of £32,000 (nil) by associates.

In arriving at the pre-tax
surplus there were deductions
for cost of production £l.lm
(£854,000), depreciation £488,000
(£205,000), exploration expendi-
ture written off £72.000
(£295,000) -and operating and
administrative expenses of
£1.55m (£999,000). The previous
year’s figures included short
term interest of £26,000.

Net profit for the year
emerged at £923,000 (£304,000)
after tax of £1.06m (£lra).

There wax also an unrealised
exchange gain of £3.36m
(£168,000) following the sale of
half of the group’s holdings of
Lasmo shares last year and the
transfer of the proceeds into
dollar holdings. Last year there
were extraordinary credits otf
£5.6 lm.

Stated earnings per 5p share
were 0.9p (0.33p).

The group has completed the
interpretation of a seismic
survey aver block 12/23 in the
Moray Firth and it is expected
that a well will be drilled there
this year.

DIVIDENDS ANNOUNCED

Date

Corre-

Total

Total

Current

of

sponding

for

last

payment

payment

div.

year

year

3.65

—

3.65

5

4.65

7.3

July 22

62

10.5

9

int

3.75

—

3.3

—

7.6

int

2.66

July 26

2.53

_

9.46

2.1

July 16

2.1

4.2

4.2

int

3

July 30

3

—

10

3.5

—

0.4

3.5

0.4

0.92

—

0.81

1.17

1.06

7J3

—

6.2

105

.9

3.39

—

3.39

5.52

5.52

int

1.75

July 16

1.25

—

4.25

Dividends shown pence per share net except where otherwise stated.

* Equivalent after allowing for scrip issue, t On capital
increased by rights and/or acquisition issues. fUSM Stock.
§ To reduce disparity.

Having regard to the results,
the group's strong balance sheet
and projects in hand Mr Shaw
is confident about the group's
prospects for the current year.

• comment

Premier's lack of exposure In
places like Nigeria and the
Middle East has allowed it to
expand production in the year
and helped to move profits up.
In Trinidad, for instance, prices
went down by 15 per cent but
Premier's sales went up by 25
per cent thanks to increased
output. But Premier’s P and L,
as usual, sheds little light on the
company's prospects. With some
£9m still in liquid net assets
and another £3ra worth of left-
over LASMO shares. Premier is
poised for action. A major U.S.
acquisition is in the works, as
are plans to bid for a stake itr
British Gas's Wych Farm hold-
ing. Money is also in reserve
against the day that one of its
many wells will prove a winner.
Drilling is expected to begin in
Moray Firth this autumn, which
presumably widens Premier's
chances. Nonetheless, the
shares, which have yet to pro-
vide a yield, remain a firm
gamble. Premier’s price has
eased by nearly a quarter in the
last year, in line with the
sector, and up lp yesterday to
49p they probably stand at a
reasonable discount to their true
asset backing.

Yearlings 12f%

COUPONS on UK municipal
authority fixed interest bands
fell by a uniform i point at this
week's issue, with one year or
yearling bonds down to 12) per
cent from 13) per cent at par
pricing. A full list of issues will
appear in tomorrow's issue.

Four views of

MAIBL

MAIBL is ffigxriiereft comtfs-Tte first
of fhe consortium, ba&ksj its meabstsfeRO
assets of OTerJ^OQOniilHan.

MAIBL is small where ft matters.

will be dealing with professional

bankers experienced in providing a fest.

5

MAIBL is international
ABrifeb lank active throughout the
\soridmaflth&<%Bivaiihfe

MAIBL is wide ranging and flexible.
Wf»ran t^nr g -iTrKiriraaI |)flckagetornfigt
mostiequireinfiiitsL'Ibis indudesfhs
provision of working capital, leasing

MIDLAND AND INTERNAnONALBANKS P.IX.

jSTfctogiraartaaSlreet Tel^hon««-588Q27LT^:885435L

Scotcros
slumps to

£ 200,000

TAXABLE PROFITS of Scotcros
slumped from £L51m to £200.000
in the year to March 31 1982.
following a downturn from
£1.01m to £431,000 at the half
year stage. The year's turnover
advanced by £L06m to £39-21tti.

Bur despite stated earnings
per 25p share of this group, with
interests in packaging, wine,
animal feedstuffs and engineer-
ing. given as nil (14.7p) the final
dividend is being maintained at
3,:’>S75p making a same again
total of 5.519p.

The directors say that severe
action has been taken to
eiiminale unprofitable trading
activities, reduce costs and
create a healthy cash flow. They
are confident the group is now
ready to take advantage of any
upturn in demand,

A breakdown of trading
profits, amounting to £965,000
(£2. 03m). shows: fond division
£1.21 ra (£1.1 6m); packaging divi-
sion £323.000 losses (£312.000
profits); engineering division
£269.000 losses (£70,000); and
overseas division £352,000
(£626.000).

Commenting on these figures
the directors say the Food
division maintained profit-
ability in extremely competitive
conditions by substantially in-
creasing sales. The packaging
and engineering divisions were
badly affected by the recession
resulting in reduced sales

The French companies in-
creased sales for the fourth suc-
cessive year but profitability
fell sharply in the second six
months

During the year It was de-
cided to cut production capacity
In the engineering and packag-
ing divisions by closing two
factories and a warehouse. These
closures, announced in March
1982, should be effective by July
1982. The cost of redundancies,
plant and stock writedowns
estimated at £1.99 ra, have been
debited as extraordinary items.

Tax took £214,000 (£419,000)
leaving net losses of £14,000
f£1.09m profits). After the extra-
ordinary items, currency transla-
tion credits of £2,000 (£27,000
debits) and preference dividends
of £25,000 (same), the attri-
butable losses emerged at £2m
(£854,000 profits).

• comment

The 86.7 per cent decline in
pre-tax profits ,at Scotcros
reflected the decrease in the
engineering and packaging
divisions and the French sub-
sidiaries. Only the food division
turned in slightly improved
results and these hardly set the
heather alight because of the
squeeze on margins. Wine sales
were boosted because of the
volume growth in the cheaper
products range. The company
blames four factors for Us plight
First, severe price competition
has frozen prices. Secondly the
switch to metrication by biscuit
manufacturers led to consider-
able customer destocking in the
winter. Thirdly, the continued
slump in UK construction hit an
engineering division which
exports only a fifth of its output
and fourthly, severe Italian and
German competition against
Scotcros* French subsidiaries.
Scotcros plans to concentrate on
the drinks side of the business,
handling and labelling machinery
exports. Interest charges were
up 50 per cent as the gearing
ratio rose from 30 per cent to 50
per cent Capital spending has
tailed off sharply and the com-
pany regards 1982-83 as a ‘period
of consolidation. The shares
closed lp down at S9p, yielding
9 per cent

Sketchley jumps 41% and
makes a £7m cash call

ANNOUNCING BETTER than
expected results for the year to
Aprif 2 1982 with pre-tax profits
some 41 per cent higher at
£7 -28m, Sketchley the dry cleaner
and clothing hirer is calling for
around £7m by way of a rights
issue on the basis of two-for-nine
at 2i5p.

At the time of the Unsuccessful
offer for Means Services of
Chicago in February, the
directors were forecasting profits
of not less than £B.9m. They also
foresaw a final dividend of 7.3p
and this has now been declared,
lifting the total payment from 9p
to 10.5p net.

It was the bid for Means which
Indirectly led to the current cash
call, for stemming from that offer
Sketchley became aware of
Rentex Services Corporation, a
linen and garment rental com-
pany based in New Jersey, and
agreed to take 70 per cent of that
company’s stock with a merger
agreement to acquire the
balance.

The directors explain that
workwear rental and servicing
accounts for the major part of ■
group profits and, following the
Rentex agreement, they consider
there will be further opportuni-
ties for expansion. In order,
therefore, to take advantage of
these is has been decided to
broaden the company’s equity
base.

They point out that the acqui-
sition of Rentex is being financed
from a medium-term loan, and
say the proceeds of the rights
will accordingly be placed on-
deposit for the time being.

The issue of the 3.38m new
ordinary shares, payable in full
on acceptance, will be under-

written by Morgan Grenfell and
Co. Apart- from the final'
dividend- for 19814E, the new-
s ha res will rank pari pasu with
existing capital and it is expected
that dealings (nil paid) will begin
on June 11,

1981-82 1960-81
rood moo

Profit on trading* 7.485 B.31B

Interact received 147 tS80

Sharing schema 387 173

Profit Infers tax 7,275 &163

Tax 3.053 Z*55

Profit after tax 4.222 3.006

Extraordinary dab it ... 418 3Q2

Attributable 3.806 2,706

PltflrlnM dividend*... 8 S

Interim ordinary 486 423

Final 1.109 938

’Retained 2.206 1.339

* Altar depreciation of E2.73m
(£2. 37m). + Paid.

Sales for the year under re-
view were £61.5m (£59-9m) and
trading profits rose, from £6.3 2m
to £7.5m, mainly as a result of
the absence oif a loss from
Greaseaters which last year
turned in a deficit of £1.05m
on turnover of £635,000.

A breakdown of sales and
profits of the remaining
divisions show (£000 omitted):
industrial £26,435 (£25,489) and
£5.026 (£5,275); cleaning

£28,708 (£26,322) and £2,583

(£1,708); textile £6.354 (£7,424)
and loss £280,000 (£177 profit).
Non-trading properties added
£166,000 (£202,000) to the trading
surplus.

Earnings per 25 p share are
stated at 27.8p (19.9p). while
pre-tax profits on a CCA basis
are sbown at £6-llm (£3.44m).

By the year end all borrow-
ings had been eliminated and
cash at bank and on deposit
totalled £3.85m.

As regards the current year
the directors say they are con-

fident the company will continue
to progress.

• comment

Sketch) el’s freedom to grow tn
the UK bss for some tune been
fairly limited. Expansion in dry
cleaning would have, given tne
maturity of the industry, to be
by acquisition. But Sketchley s
market share was large enough
five years ago to spark off a
monopolies reference when it
tried to buy Johnson Group, and
that route is presumably still
closed. For the time being, at
any rate, the hiring out of
industrial workwear has in-
evitably ceased to be a grown
business, although long-term
prospects for expanding the up-
market probably remain favour^
able. So the inclination to look
overseas, particularly in the u-5.,
is easily enough understood, one
medium-sized U.S. acquisition in
textile . rental — rather smaller
than Sketch ley’s original quairy
—is now to be followed by
others of the same general sort.
Sketchley’s shareholders will
probably agree that this is going
to be good for the pre-tax line,
though the likely effect on earn-
ings per share is less clear. In
any event, the present rights
issue is obviously more favour-
able to shareholders' interests
than the placing which was
planned in February. The results
for the year to April 2, mean-
time, show the expected lift from
elimination of Greaseating, and
a very impressive • efficiency
improvement in the dry cleaning
division. The ex-rights yield,
based on yesterday's - price of
269p— up 3p— is 6 per cent.

McCarthy & Stone sees upsurge

McCarthy and Stone, a pro-
perty development company
which specialises in housing for
the elderly, forecasts an increase
in pre-tax profits of at least 40
per cent for the current year,
ending in August.

The company — which - pub-
lished its prospectus yesterday
prior to a listing on the Un-
listed Securities Market — is
placing 1.25m shares at 137p
each or 15 per cent of its equity.

At this price, McCarthy and
Stone is capitalised at about
£11.4m. The company was
founded- by Mr John McCarthy
and Mr William Stone in 1961
but it did not move into housing
for the elderly until 1977.

Since then, turnover has
grown from £796,000 to £4.53m
for the year to August, 1981.
Pre-tax profits in 1977 were
£49,000 and by 1981 had grown
to £1.43m. In the six months
ended last February, the' com-
pany recorded profits of £1.03m.

It forecasts profit before tax
for the current year will be not
less than £2m.

Of the shares to be placed,
416.665 have been sold by Mr
McCarthy and Mr Stone. The
first-named retains 55.7 per cent
of the shares, and Mr Stone has
24 per cent

The 833,33Q new shares will
raise approximately £lm for the
company. This sum will be
applied toward the group’s bor-
rowings and will be used to help
finance further developments.

McCarthy & Stone has some
£4m borrowings, comprising .
£2.7m of bank loans and £1.3m
in hank overdrafts. After the.
placing, the company's ordinary
shares will have a net asset
backing of 54p.

- Dealings on the USM are ex-
pected to begin next Monday.
County Bank is handling the
placing. Stockbroker to the com-
pany is de Zoete and Bevan.

• comment

McCarthy and Stone says there
are lira people in the UK over
the age of 60 and only 5 per
cent are in “ sheltered ” housing
offered by local authorities. Other
-developers have: been, apparently ;
scared off front this' business J
because of the warden fees, extra '
costs for special facilities and !
the after-sale management |
business. McCarthy, and Stone
jumped in feet first;, keeping a
keen aye on costs. It has been
able to return a hefty 30 per
cent pre-tax .margin. In fact, the
after-sale management business
is -now a profit centre- and

Government officials - are
apparently studying the company
to see how they too can 'beep
costs down. With a market still
pretty much to itself and a slim,
stack of. shares on offer, the com-
pany has gone for a fairly glaffly
rating. The shares stand on_a
fully-taxed prospective p/e of li,
which is a good premium. to thi
sector. even so, the prospective
yield of 6 per cent is likely' to
decline as the shares shoula
move to a premium, market per-’
ra it ting, in early trading:

R.Iitchen

Tayor up
at £ 06 m

IN LINE wt

Taylor's preduoBS ^ fer

lag prospects table P * iq $2
th« *2

emerged a* -^000 . vv jth

with loses of KT™ a°° the
a surplus of saw*
second six monk of tn- p
vious year.

SSntafnSTat 3p n Lastye^r.
Sis knitwear anufac+urer.

textile merchant, -aperty

vestor and dealer, ud a final
Of 7p. .

The directors sa that .

sections of the grout activities

showed a marked iprovetneo^ .
mainly due fo obtain an m
creased share of ti marly—
available. The cur re pattern
of trade suggests an re
flow of profits over the«ar. the.,
add.

Tax took £245.000 '£16.000
credit) leaving net pfits
£369,000 (£129,000 loss) and i
after minority debits o£29.Ww I
(£17,000 credits) attiulanle
profits emerged at 40,000
(£212,000 following extra-
ordinary credits of £32400).

• comment

Robert Kitchen Taylor’s 'turn i
to interim profitability stars a
continuation of the revery
begun in the second half the
year to September 1981. C the |
merchanting side in partnlar. [
concentration on the up-nrket j
fashion end of textiles fried
width to margins, and the im-
.pany’s involvement with thecal •
underwear meant good newffor
winter sales. Kitchen Tayr’s ■
strategy of huiiding up a ib- ;
stantial property portfolio as >’
some way to go, hut prepay
profits in tite first half wpreyt t
about £200.000, more than dou e
Chose of the comparable peril.
Despite' an increase in worick;
capital, it seems that gearig
has not risen much above ta
42 per cent of the last year-era *
The "even flow, of profits'!
alluded to by the company#
suggests about £1.3m pre-tax far
the year, and a prospective Pm
of 8.6. After the results, M
share price gained lOp to 14

- but fell back to 141p. still a tm

- high, and yielding 10.4 per ciiB

London Trust holds 24.5 per cS
of-the equity. . N

Anglo Continental fall

Taxable profits of Anglo-
Continental . Investment A
Finance Company, a wholly*
owned subsidiary of Generade
Occidental e of France, dropped
from £3.54m -to £2. 69m for the
six months to September 30,
1981.

Tax took much less ait £10,000
(£707,000) ami stated earnings
per share rose to 7^p- (7.4p).
The interim dividend is. out by
10p to 5p per share.

Minorities accounted for
£259.000 - in the corresponding
period a year earlier.

25.

London EC2

A prime Banking building.
38.735 sq ft approx.

Lease for sale.

• Full air-conditioning.

• Car parking for 20 cars.

• Banking Hdi.

• Telephone system and Te!e installed.

• Extensive catering and enteraining
facilities.

• Fullv fitted out to a very high standard.

.. V.--V.

Capper Neill

Defaenham Tensor*
& Chinnocks

Chartered Surveyors

Bancroft House Paternoster .qyo-re-
London EC4P 4ET

SUMMARY OF PRELIMINARY RESULTS
for the year ended 31 st March lfi&2

Turnover

(including exports

Trading profit
Lbss: interest payable
redundancy costs

Profit before taxation
Taxation

Profit after taxation and mmotitfos
Ordinary dividends

of pit& of sssodtdod company

1982

1981

£000

£000

198,249

105>432

36,286

32^)94)

5,495*

6,650

1,978

2,020

950

818

2369

3,812'

923

622

1,779

3,780

Healey & Bake

EMMriMtf ISZO In London

tlflOfd Broad Street, London EC2N1AR

T elepho n e Of-6284361

'-TT fo

M. J. H. Nightingale & Co. United

27/M Lino London EC3R 8ER Tdophone

1.212

1,212

The Directors are recommending a maintained final dividend malting
total payments of 42 pence per share for the year.

Sales, with an improvement in exports, have bean maintained but the
competition to achieve these sales has resulted in a reduction in trading
profit.

The world recession has caused s substantial cut-back in capital
expenditure particularly by the petrochemical and related energy
industries which represent a significant proportion of the group's process
plant customers.

Capper Neill has survived the appalling conditions of r e c en t years
without disastrous results and, in the longer term. Is strongly, placed to
taka foil advantage of a return to more nonn e l ^r^in fl^ rKikinna,

FaacopyofihefunRepmQndAwaumv^toThaSMntBrfr - ■
Capper Nati l phi. Warrington WAJ 4AU

Dssip.nramifocturBandarsctionnfprocesRplairt
for world industry.

18B14I2

ttiah (jar-. Comoany ;•

120 120 Am. Brit. ind. Ord. ...
- 130 100 An Brit. tad. CULS ..

76 62 A i r»p rung \i r.

51 33- Arniitiji &'Rhodw.„.„

214 187 Bairdon HMJ

108 100 CCL 11 pc Conv. Preh.4
285 240 Cindico Group .

104 61 . Daborah Servicsa -
131 87 Prank. HpraaH"..L.V-'-

83 39 Frederick Pirkpt.'j;.^.'.

78 4* . Geoigt Stair.

102 . 93 Ind. Precision Cavtmgt
110 100 lan Con*.-

113 84 Jackson Group

130 108 Jamw Burro
334 231 Robert JenkuM

88 . 51 Scrunona "A”

. 222 . .158 Tontay . & Carfiata .
1S>>- 10 Twin lock Ord. ..r.

80 88 Twin Ire It ISpcULS

'4* 25 Unilock Holding..-.-

103 73 Walter Alexander

2E3 212 W, S. Yea MS '......L,....

Prioea now available

Wc.Chwro.Svrp rtmrnJZ

-127 Z.jSS 7 B -| 10 J’ 3 -«

'2 ' . — '6-1 8 4 S3 4 3

| S! a s

^ 100 107 ?0

— 8-0 9.B 3 0

ra Z li 11-G 2a

55 + 1 ^ 34 Ti

m C , 5 ^ J* 71 ioi

at-- | J »

m :■! *j «» " '!!

158 _ '*■] 13 1

15 — J 7 - 1 13 2

-3 - ~ 16 0 19.2 Z ~

I Z li w» j. ,1

“ ' V “• 2:? ill ,|J

on- Preatel page 48148.

LADBROKEEVDEX

Close 689*594

— ; .. .

•' /-.L'- v *yr;

> usm

- 126 j

r Close of b

; BASE DAT
T-eL; o

Financial Times Wednesday June 9 1982

— * UK COMPANY NEWS

Rotaprint rights Duckha l m , Capper-
to raise £1.3m EST dives to

r.r?H^ prijl * t P ritt ting and dnp* UK current forward order p*i- hl3CK DEPRESSED PRE-TAX profits

■licauQna equipment manu* tion for this product is he-ter ^ ^ have been shown by Capper

hV n £ er ' -I s , raising a net £1.3m than it has been for four y«ars. ALTHOUGH turnover at NeUl for the year to March 31
?aara*L ?£, a nghls issue of And directors are consent Alexander Duckham was little 19S2. tailing from £3.&b& to
. i.*ho, 428 II? oer cent cumuli TintnniSnr i« 41 wail aritfanrd in nhano&A at 5901m against £2. 57m on sslcs slightly higher

Neill

£2.6m

convertible redeemable Its recovery. 1

£29-34m, this wholly-owned sub- at £108 -25m, against £1 05.43m.

preference shares of a each. The rights Is being mder- sidiary of British Petroleum At half time the pre-tax figure

The directors also announce written by Guinness M?ion & swung back into profit with a feU from £1.77m to £J-61m and

that the group bas suffered ^ sub-underwriting grange- pre-tax figure of £l-2m for 1981. the directors stated that they

losses during the year ended mcnts 376 complete. Bro-ers are jn the previous year the com- were unable to view the second

March 27 1982 estimated m haw Rowe & Pitman and debugs in p3 ny incurred losses of half with optimism-

been not ^SrS n.liS paid form will begu on July. £507,000. Although the full year figures

after £360,000 interest and 5 « Trading profits were £1.42m

£200,000. extraordinary debits— . against losses of £158,000. There

for the previous year the pre- • comment was an extraordinary debit this

tax loss was £533,000. Once urnra a time Rotaprint time of £908,000. No tax was s Hs*J55. lo * er . , a _ L98 P

for tiie previous year the pre- 9 comment

tax loss was £533,000. Once upon a time Rotaprint time of £908,000. No tax was "“iLfoinK. *t £L98m

They add that the Josses for was queen of the >ffset litbo- again payable. Stated earnings JtaS tfSS
1981-82 have made the group graphic printing idustry Its per share were 30p against was Sso a 33

heavily dependent on bank quality machines. favoured by losses of 12.6p.

borrowings.

printers

in liAi.ca IULICIUC XU Ul

The directors say trading con- doubtful debts.

There was also a £336,000
increase in the provision for

For everv seven ordinary printing ope ratios, had been djtioiis are expected to remain

shares cTSp. " Dear,y *° — —

d it ions are expected to remain An increase In borrowing
fiercely competitive throughout almost offsets the benefit of

Midi es iw ziHi. nniaers will DR 1 , _ . ■«*■■**«* oiimuoi uomtis uir uuicui m

offered two convertible , w .|U2l MOon sales 1982 u and c ‘? Q . tmued emphasis lower interest rates, says the

preference shares of £1 at a j*? 1 *£■ 5L?® 1 4 r2r»titiSa SilfnS Wl!l be apptHK ! 10 Productivity directors, although, at 38 per

pr.<* of £1 per preference % “t£ «<» “ sl «* borrowing is seeept.

S-Unc^ ab ’ e ,U)1 " SE stfiasr We n, - ab Pest proO.oms b y the

The direcforo bel.eve "p^V d&l™. By WSL £1.26lHnSe Srt rmtt.’Kf’ft.nriw oSi

is»e is essential to re- the eompanyhnd ttpped into a * 1,i,UU1 JSt “1S1

establish the appropriate capi- £533,000 los Borrowings had . dirertors The eroun hL xnr-

tal base for the company, to been mount Jg and Ian decision .to QJ I flOIX12S vKSTthe ap^alS^ P conditiS^

redress the current over- launch a rt re competitive line recent vears without

reliance on bank support and to of macbin* pushed net debt to -* disastrous results and in the

£% ^S' OPment ■* tl,e SSkJSSTTUT pf « the T vDCker longer <*™, is strawy Placed

£ 1 . 26 m rise
at Thomas
Locker

groups uusiness. stiarenoi&a imiw » vi me ^ tn take fun advantaee of a

Each preference share may be ’atestbaJQra sheet date. Hence pRE _ TAX at Thomas retuiti to more norrrSf TrSmg

converted into 20 ordinary the righ Locker (Holdings) doubled However, they point out that

shares of 5p each during the the from £l.lm to £2. 3 6m i n the competition has resulted in a re-

years 1983-88, As the nominal well; ojer books sue year to March 31 1982. The duction of 18 per cent in trading

value of the ordinary is cor- and an>verseas launch is on the increase came in profit from £6.65m to £5.45m

rentiy 20p, a reduction of capital card.^ The .^ , ® pa i iy h J 1 ^ f . ° second half when profits although sales have been main-
u, Pr ^ 1 'ZSujSESSS ISTf® I510 .oT to tamed with m improvement in

rwerve _of the amopnl hy which havered Jhisioeswia Re, e- U -Tnm of to isereen- "fff*

the capital has been reduced.
As a result of a £lm cost

prir have reason
imjtient — Rotaprint

reduction programme together likF ?° ^

be ing and filtration engineer rose . .

pot from £20-i2ra to £21.K>m. ®\ u jS E p^ep^T

The final dividend is raised have caused a cutback in capital

.tuutLiuii • , ' „ ■ ____ rv, 1 r,w„ Tha c 113*6 CaUABU 3 CUIU 3 CK Ul CdUlUU

with the launching of a new tirne m the M«rgte<fc ™ e from 0.8125p to 0.92p for an expenditure in the petrochemical
range of electronically controlled S K« «asea yesteraay at zup. , ncre ased total of l.lTp against and related energy industries

suction machines, the group's d vn 2p-

1.0625p.

which represent

significant

Trading profits improved proportion of the group’s process

RHM acts tcimprove SSS SSEmbs

bread profit:bihty SSSySft’ias

Ranks Bovis McDcugail. the foo ft,

^r°V p wbos j® *5“ d pjHf d, .I not considered suitable for fur- SSit?£5fi ,ariy - f S°™ the „/ ar East * has
elude Mothers Pnde 3. thi»r invwtwiMit debits £56,000 (£16/ ,000). being required increased effort to main-

Ni ruble in addition to Hovis.-* u _. ^ , tbe cost of re-structuring, tain the order book. At home

taking urgent steps to impr?

. tbe cost of re -structuring, rain the order book. At home

The group hopes that new stated earnings per 5p share customers* expansion pro-

the profitability of its b^ d employment opportunities result- were 2.4lp a gains t 1.85p.

baking business.

grammes are being set aside and

*!*!?£: Pre-tax profits on a CCA in the shorter term the directors

i ,,, ., . ■ * ‘t-wia uu “ ju uic Jinurier itrrin uie uireciora

British Bakffries a srtmm S jota It^ G.Sad S ^ r03e &Mn B41 ' 000 “ vvv th h ^ook is ftr from

- pip ”-

rJWJMSEiSfS! has already Wormalds Walker losses

at Newcastle in order to^^aJl
a new bread production ti‘- *he

already

cost of the investment* announced that its Glasgow

mated to be £2.7m f* ^ bakery is to be rebnilt over the ItlOrAQCA fn +X4I1 h /X
extend the present b*nr *>y next IS months at an estimated IliLI Cd^V IU dlJHU.U^O
15.000 so IL rort of £11.5m, partly funded by _ 7

hpduled a special grant from the Scottish CONTINUING WEAKNESS in duced last year as a result of

The development is Economic Planning Office. demand was stated by tbe reduced orders from major

&3rtT»SSe --j 3B 'TZ?- ^ tiVno

vpanciaS^ear Ranks’ bread v° m ' SSS^'SSSSA^S

area. It will also m* possible pannes are believed to have ^ fm- fhe ww - tn ^ u f lome 1 f s - ADV " S€ . J i° .

the discontmuaitioh (production suffered losses of more than £5m. j. ebnl ari“ 1982. Se°Su«’'cl^SlSS!^lS

— — The weak demand for certain was a small but significant

®f tde group’s products is a contributor to turnover.

I worl d recessioti. say Nevertheless, there has been

EUROPAN OPTIONS EXCHANGE I the directors, which has parti- a continuing demand for high

Aus. I Nov. Fob. ■ I "SflLjS^SHl i** 0 ™ ^ ** Walily blankets in the UK and

EUROPAN options exchange

Aug. 1 Nov. ; Feb. !

Series Vol. : Last VoL | Last j VoL j Last 1 Stock

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1 lAL VOLUME IN

CONTRACTS:

4606

Asked

mmm

B = Bid

^ m

C=Call

P=Put

UK textile industry.

overseas. Despite reduced co6ts

h»'mC er slipped from f3 07m . the remaining blanket turnover

At ^interim stage pretax * ”°“

losses rose from £63,728 to ..

The factory-based companies
have had to fight hard to keep
overheads down. Those involved

la steel fabrication products |

have had to reduce their .
activities and have had a most
difficult year. The director? say
that recently some factories
have been experiencing an up-
turn \tinch could be described
as encouraging.

The dividend has been held si
4Jtp net with a final of 2. Ip.
Earnings per 10p share were
given f*s f ailing from 1L0%P to
6.l7p.

Tax took £323,000 (£622,000).
There was a credit for minorities
this time of £133,000 against a
previous debit of £10,000. Last
time fbere was a capital profit
on the sale of assets of £39,000
and an extraordinary credit of
£ 1.58 m. Retained profits
emerged much lower at £567,000
<£3.59m).

On a current cost basis pre-tax
profits were £443.000 (£601,000).

• comment

Capper-Neill has had a rougher
ride than expected as it fought
with & very depressed home
market and highly competitive :
international business. Adding |
to the injury was the £0.34m debt :
provision mainly relating to the
collapse of De Lorean. with jao
real sign of upturn yet farther <
redundancies will be necessary i
over tbe current six months,
though hopefully at a lower level
than tbe past two years. Over- ,
seas business, which accounts for
a third of turnover, is reasonably
healthy but faces some big league
competitors. The company is also
at a disadvantage compared to
its counterparts, in having to
fund contracts from expensive
short term borrowings rather
than from a strong cash position.
Surgery has brought overheads
more into line with lower
margins available and there is
promise of a better contribution
from the small industrial side.
But overall, with two-thirds of
the business in site construction
engineering, the group will be
hard pressed to maintain even
last year's performance. Yester-
day the shares slipped 2p to 57p
for a yield of 10.9 per cent and
tbe p/e is 13, with much support
probably coming from income. |

Atkins Bros,
rises and
pays more

Taxable profits of Atktes
Brothers (Hosiery) finished
higher at £516,000, compared
with £448,000 for the 12 months
to March 31' 1982 despite a
slight decline in the second half
from £383 J. 10 to £3 64J90.

A final dividend of 3.&p
(same) raises the net total by
0.35 p to 5p per 25p share.

FuH-year turnover slipped
from £12 .28m to £lL97in. Tax
took much tbe same at £149,000
(£146,000).

/Ss, aberthaW

Y=f CEMENT

Group Results for the year aided 31st December 1 ^^

1981

£*000

1980

£ f 000

Turnover

52,884

31,132

Profit before Taxation

3,192

2,566

Taxation

805

479

Profit, after Taxation

2,387

2,087

Earnings per Share

6L09p

53.37p

Total Dividend per Share

11.50p

lO.OOp

Continued growth in profit, dividend and e arnings per share.

-A- Second half of year reflects benefits of higher production, increased -
sales and manufacturing economies- ■

Net borrowings reduced by f 2m. •

Copies of the Report and Accounts may be obtained from The f
Abertkaw & Bristol Channel Portland Cement pi.c^ Beynon House , Mcnaa
Stuart Square, Cordi# CF1 6DR.

Rne Art Developments

-mail order and greeting cards-

Year ended 31st March 1982

£000's

SALES £80,185

TRADING PROFIT £5,540

INTEREST : £2,137

EXCEPTIONAL CREDIT £1,009

PROFIT before tax £4,412

DIVIDENDS per share 3.00p

1981

£000's

£75,704

£7,444

£2,813

£4,631

2.75p

T

Fine Art Developments pJ-c.

The 1 982 Report and Accounts are a va3 able from
the Secretary at Fine Art House, Queen Street,

Burton upon Trent Staffordshire. DE14 3LP.

£126,975.

Pre-tax losses were struck

Conscious of the need to ^ ter ^

improve profit performance, the tune £56^08. Depreciation
directors have decided to *Jishtly lower at £41,947
diversify in “ a substantial way " (£48^24). Bank interest was
into another field of activity out- reduced from £80.426 to £56,430.
side the company’s immediate ’ On a CCA basis there was a
knitted products and dyeing pre-tax loss of £454,844.
interests. On May 25 directors agreed

Short-time working and a to the offer for its shares by

Laoort

reduced workforce were intro- Hainsworth & Sons.

Carr’s Milling rises
despite tight margins

COMPETITIVE pressures kept interests, they say. and in parti-
margins tight, say tbe directors cular a strong and sustained
at Carr’s Milling Industries recovery hy the agricultural
after figures for the first six marc banting subsidiary.

Progress made in 1981 should
continue in 1982

months showed a rise in pre-
tax profits from £480.000 to
£578,000.

Tbe charge for tax rose from
£27,000 to £37.000. The interim

Sales ‘for the 27 weeks to {M*gd te bom lJ25p

March 6. 1982 were £20.99m, ^ 1 -' op net ~ last ^ ear ^ s
against £19m for the previous was 4-^op-
26 weeks. The directors say
that a satisfactory level of turn- dAWT
over was achieved by flour mill- " Lii ^

ing. animal feeding stuffs and Rowllnson Construct! ons

Rowllnson

Construct! oos

bakery businesses. However, Group has changed its name to
they add that the trend of tight Rowlinson Securities. The

margins is continuing.

effective date of the Certificate

iiFar, in peace § yon need his help

Group profits reflected better of Change of Name is dated
results from agricultural May 21 19S2.

Fleet Letter expansion:
pays lp above forecast

PRE-TAX profits of USM beginning to look for some
quoted company Fleet Street similarly cash-generating busi-
Letter expanded from £301,000 nesses to buy: minority share-
to £412,000 for the year ended holders on the USM should
March 31. 1982 and the dividend perhaps watch for signs of Fleet
is boosted from 0.4p to 3.5p net Street Issuing more paper, to
per share — a 2.5p payment was make these acquisitions. Mean-
forecast. while, costs are being kept

In their interim report the under control, without any effect
directors announced taxable on the fortnightly output of tips,
profits of £149,450 (£S9^54). and Circulation is currently stable
were confident the full year’s at about 13,060, hot weather and
results would ‘ comfortably ex- political crisis serving to put

Salient figures
Safes

Profit before taxation

Profrt/(k>ss) after taxation and extraordinary item*
Ordinary dividends
Earnings per share (pence)

1981

rooo

214,670
16 ( 212 .
. 6348
4052
* 10.78

1980

eooo

796,531
11(696
(7^62)
4.052
• .5.49

ceed those for 1980/81.'

off any promotional efforts until

Turnover 'for the year went the autumn. After a higher divi-
ahead to £871.000. against dend than indicated, the shares
£671,000. and the tax charge was still yield only 5.3 per cent.
£214.000. After an extraordinary reflecting the growth record, but
debit of £57.000 — flotation also suggesting that they have a
costs— the balance was £141.000. public.

Earnings per share are given

as 6.6p, compared with 4.5p. 5PAD4

• comment jw«b »ar-

THE ARMY BENEV13LENT FUND

•will helpsddieiB, ex-sddiersand tibeir feimlies in distress

—

Hnuhipd m ibe *asi year.

public.

SPAM

•

Pnca

JocsB

ft or

Bonce Bilbao

356

Barco Csimi

342

.-a

Banco Erre.-njr

SCO

Banco Krsaano

3*6

Barca Isd. Cat. .._

114

Banco Ssmandor ....

33!

Banco Urqu jo

ID1

-2

BanM V.zeaya

....

368

B^nco Zira^cza ..

250

Dr^dtJoi

14D

-*■4

Esoano<3 Zn*C

....

70

Fecsa -

....

650

-1.2

Gc! Prp&sdps

»

Hidrala

86

-1

tt j«dus» -

>w .

SLO

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885

-5.5

Perrehbsr

S

Scqefijo

10

T?irf'-.i< a ....

707

-0 3

■Jn cn 5.ei; . ...

61 0

—1 5

The Annual General Meeting of chemical manufacturers, Laporte . Industries
(Holdings) Limited was held on 4th June 7982. The following are extracts from the
statement made at that Meeting by the Chairman, Mr R. M. Ringwald CBE

• Trading in the first few months of .the current year has been up -to expectations.
The level of activity of most business areas has been similar to that achieved in the
second half of last year, which means that overall, it has been better than during
the corresponding period of last yean

• With regard to the economic climate in which we operate, it would be unfair of
me to say that any significant -upsurge has been observed by i& on the other hand
there is little doubt in my mind that we reached the bottom of the cycle some Tittle
while ago, and although no really significant improvement in demand has been felt
the- feet that our rationalisation occumsd in good tiipa. and that we are now a more
efficient productive and cost conscraus mit means that even without substantial
economic growth, we are very much more solidly ¥a sed in terms of hard core
profitability.

• I can report satisfactory performances in the first few months of this year by our
relatively new subsidiaries. Our aim to broaden foe technological base of our
Company is proceeding with vigour and we ar? placing growing emphasis on
extending our activities into related but less capital intensive businesses.

AAA CopJeaofthc 1981 Report and Accounts snathe fuHAQM statement can be obtained

rUf

• • • *

Hi

m

1 j -•••■

1

ch*Zl‘

USvlJ,

CofflpanicB and Markets

UK COMPANY NEWS

Financial Times Wednesday June 9 l9S ~

B,DSAND DEALS Marks & Spencer t)
Lookers proceeds spend over £300m

Cater Allen

For the period ended 30th April
1982

with Braid bid

* The merger has been successfully

achieved

* Net profit of £2,072,000 after transfer
to inner reserves

* Dividend 34% from 33%

* The new year has started well

Financial Highlights

Issued Capita! - Preference
— Ordinary

Reserve

Profit & Loss Balance

1982

£

2.085.000

6.874.000

5.468.000

2.448.000

Lookers, the Manchester-based
vehicle distributor, will con-
! tinue with its £3m bid for the
Braid Group despite the fact
that this will lead to the loss
of Braid's Ford main dealer
franchise in Macclesfield.

A second Ford dealership at
Burton-on-Trent has also been
the subject of discussions. How-
ever. Lookers said yesterday
that it understands it would be
the preferred candidate to con-
tinue this franchise.

These two dealerships have
come under review because
Ford docs not allow franchises
to operate rival dealerships
within 30 miles. Sales of Ford
vehicles account for 23 per cent
of Braid's turnover.

Selling Macclesfield will be

done with the full co-operation
of Ford, protecting the rights
of those involved, Lookers said.

"This will in no way upset
the major commercial benefits
we expect from the merger of
our two companies,'' it added In
a letter to shareholders.

Lookers said it had no inten-
tion of relinquishing the share-
holding it had built up in Braid,
which now amounts to 1.34m
shares or 22.3 per rent of the
equity. This follows the pur-
chase on Monday by Bolling
Investments, a Lookers sub-
sidiary. of 25,000 ordinary
shares at 50p.

Lookers' full bid consists of
50p for each ordinary share and
the same for each preference
share with the alternative of a
Lookers' loan note.

MARKS AND SPENCER, tie St
Michael brand stores group,
continues to invest heavfiy. and
has budgeted more than £300m
to’ be spent over the neat four
years in property, buildings and
equipment. Lord Sieff of Brimp-
ton, chairman, tells members In
his annual review.

He says that new stores were
, opened in Truro, Exeter. Brent-
1 wood, Redd rich and Bexleyheath
during the 1981/S2 year. Stores
i are being built m Stratford-
| upon-Avou, Epsom, Banbury,

1 Enfield, Carmarthen, Dumfries,
and Horsham, and the group
has extended existing units in
Bury, Boston, and St Helens.

The company is also extending
tores in Wolverhampton and

Approach to St George’s

16,875,000

Total Assets

Profit

Dividends

660,990,000

2.072.000

1.593.000

St George's Group has received
an approach which may lead to
an offer. Shares in the linen hire
and laundry group added 6Jp
yesterday lo 138p where the
market capitalisation is £6^m.

Given that the board, headed
by Mr Peter Deilar. took up 25.2
per ceni of the recent rights
issue— pitched at 74p per share
lo raise £830.000 net— it is
pmhahle that the approach, if
brought to a conclusion, would

only lead to an agreed bid. St
George's net worth at February
last year amounted to £3.6 m, after
• an adjustment for two sub-
sequent acquisitions.

Further details of the current
negotiations are expected shortly
but Spring Grove, the cleaning
group which shares with St
George's ihc merchant bank.
Charterhouse Japhet, as financial
advisor is widely rumoured to
have made the approach.

stores in Wolverhampton ana
! Wakefield, he adds.

As reported on April 30,

I group sales for the 53 weeks
ended March 31 1982 expanded
from £IB7bn to £2.2bn and pre-
tax profits rose by £41 m to
£222 m. The dividend is stepped
up to 4.6p (3.Sp) net with a
final distribution of 2.85p.

Total UK exports- increased
from £47.6m to £58m during the
period and export sales outside
the group went ahead by 1841
'per cent to £28.5m.

In the notes to the annual

Brook Street faces
difficult year ahead

Cater Allen Holdings PLC

1 , King William Street, London EC4N 7AU
Telephone: 01-623 2070

MacLellan asks
for suspension

HOOPER & CO. (COACHBUILDERS) LTD.

Established 1BZ8 - Associated wlih Rolls-Royce since 1909

TO ALL ROLLS-ROYCE & BENTLEY OWNERS

(rolls! Wo have avro n A r*A nnp cima.J.v 4 00(1 <in<4

The board of Glasgow-based
P and W MacLellan yesterday
requested a suspension of deal-
ing in the group’s shares pend-
ing details of an acquisition. It
is unlikely that the deal will be
concluded, however, before the
beginning of next .week.

The suspension price was 36p
and the market capitalisation of
£l.lm is broadly in line witfa net
asset value. Following the sale
in recent years of its steel and
paint interests. MacLellan's
activities have been confined to
fastener distribution.

Peabody Intnl.
acquires two
UK companies

We have extended our same-day 6,000 and
12.000 mile service with FREE collection and
delivery to all areas South of the River, North
Kent and North Surrey.

KIMBERLEY RD., LONDON NW6 7SH

01-624 8833. TELEX 295794 HOOPER G.

THORN EMI

Thorn EMI Lighting has

Formed Thom EMI Lamps and
Components to handle combined
embodiment sales of light
sources and gear as well as sales
of photographic, projector,
studio, automobile and miniature
lamps to specialist distributors.

BRISTOL

WATERWORKS

COMPANY

AREA

ThomCur*

OmM*

•Sodbur,

“BinSTOC

^=4 Jwwwn

: -F pi Sea

BRISTOL

WATERWORKS

COMRANY

Peabody International Cor-
poration of the U.S. has acquired
two UK-based companies far ao'
Undisclosed sum. The companies
are Vactor, a licensee for the
Peabody Myers range of Vactor
municipal and industrial cleans-
ing equipment, and Industrial
and Municipal Pollution (IMP),
a contract cleaning concern.

The U.S. group, which already
had a 20 per cent interest in
Vactor. purchased Bought on
group's 60 per cent stake and the
20 per cent interest of Mr Peter
Newman, who formed Vactor in
1973 in conjunction with
Boughton.

Mr Newman has become man-
aging director of newly-formed
Peabody Vactor and IMP. which
become part nf Peabody Inter-
national’s fluids materials hand-
ling division

Peabody Vactor will continue
to assemble and distribute units
of the Peabody’ Myers range of
equipment, primarily for the
UK. and in addition, will con-
tinue to supply East and West
Europe, Africa. India and some
of the Far and Middle East and
Asian markets. IMP provides
sewer cleaning services through-
out the UK using Vactor equip-
ment and plans to expand both
the municipal and industrial
markets.

Mr. Newman said Vactor’s turn-
over this year would be over
£lm and that of IMP about
£lm. He hoped these figures
would double in 1983.

THE TROUBLES of staff recruit-
ment agency Brook Street
Bureau of Mayfair are not yet
over, Mr Eric Hurst, joint chair-
man, with his wife Margery, says
in his annual statement.

"Despite the more favourable
indications which now exist in
the economy, the remainder of
1982 will continue to exert pres-
sures upon the company and
its staff." be says.

As reported on April 27, the
group made pre-tax losses of
£1.53m (£1^4m profits) in 1981
on turnover of £14£2m
(£22.05m), while losses per lOp
share were staled at 10.39p
(7.49p earnings). A nominal
dividend of 0.1 p net (2.135p)
was recommended.

The group reacted by contract-
ing its branch network but Mr
Hurst says it has taken care to
retain the ability to expand
rapidly to meet demand when
business activity increases.

“We have taken the view that
as the country gradually
emerges from recession, indus-

The surplus for the year 1981/2 of £896,000 exceeded the Board's expectations,
says the Chairman of Bristol Waterworks Company, Mr. Gilbert Parrott, in his
statement circulated with the Report and Accounts to be presented to the 136th
.Annual General Meeting of Stockholders on Monday 28th June 1982.

This was achieved because of organisational changes, improvements in
efficiency and helpful weather conditions.

PARAMBE/O'DAIR

In accordance with the terms
; set out in the circular to share-
holders dated July 3 19S1

! whereby all the issued share
capital of O’Dair Brothers was
to be acquired by Pa nun be the
total consideration has been
agreed at £186.424. 650.565

ordinary shares oF Para tithe —
valued at £149,630 — were issued
nn completion. Accordingly, as
full and final consideration a
further 159.975 ordinary shares
are being issued to the vendors
making a total of 810,540 shares
(17 per cent).

THE DIRECTORS of Myson. the
heating and aipconditioning
group, are confident that share-
holders will approve plans to
raise the company’s borrowing
limit to three times shareholders’
funds.

Myson will put this proposal
to an extraordinary meeting
ahead of the annual meeting this
Friday. Following a difficult year
in 1981 when shareholders’ funds
fell to £4.6m Myson has been, in
/technical breach of its articles
which limit borrowings to twice
shareholders' funds. Borrowings
are now about £12m.

Mr John Salkeld, deputy chief
executive, said he thought the
extraordinary meeting would be
a “ non-event ” since the com-
pany's bankers. Barclays, had
approved the new limits. The

nine financial institutions, known,
as- the Moonrick syndicate.- which
took an 81.6 per cent stake in
Myson • last year, are also
expected to back the proposal.

We had a clearing up effort
this year and wrote down the
assets which were not worth the
money,” commented Mr Salkeld.
“But our earning poweT was .not
affected.”

Myson more' than doubled its
taxable loss to £7.12m in 1981
on turnover which was 13 per
cent lower at £46 Jim and
passed its dividend.

The Welsh Development
Agency owns 5-8 per cent of the
equity

Under the new proposal bor-
rowings will be related to
shareholders' funds or share
capital, whicever is the greater.

TYSONS (CONTRACTORS) P.LC.

Results for the year ended
31st December, 1981

Group Turnover

DAWSON INTNL.

Other points from the statement arc:

* The satisfactory financial result made it possible to limit increases in charges
for 1982/3 to an average of bV/v , well below the current rate of inflation.
Householders now pay an average of 66p a w eek for water.

The option to have a metered supply is being extended to all commercial
consumers this year, and to domestic consumers starting in 1983.

ik An issue of £7 million of 9 r /c Redeemable Preference Stock was made in
March.

* Rainf all was H95b of Standard Average, and nearly half of this occurred
between September and December, enabling the highest abstraction ever at
13,750 million gallons, to be recorded from the Mendip reservoirs.

The average daily gross consumption of 73.3 million gallons was just over
25b more than in the previous year.

^ Supplies were affected by a number of incidents, including power failures
and freak blizzards.

•ft Essential capital works to the value of £3.3 million were earned out.

^ Completion of a telemetry control system providing information from
pumping stations, reservoirs and treatment works has led to better operational
management of the supply system.

Again, the trout reservoirs fished exceptionally well, with a record catch of
41 ,525, and high quality was maintained. ,

ifC The Board offers congratulations to a fellow Director, Mr. M. A. Anson on
MsappointmentasChairmanof Wessex Water Authority and its appreciation of
the loyal and willing service of staff for their continued commitment during a
difficult period.

Dawson International has com-
pleted the disposal of John
Haggas (Knitting) and the busi-
ness of John Haggas.

Group Profit before Taxation

Taxation -

Group Profit after Taxation

Minority Interest

ABERDEEN LAND

Dividend

The recent offer by City of
Aberdeen Land for the whoic of
the issued capital of General
Trust and Heritages has been
accepted in respect of 12.850
ordinary shares 1 85.66 per rent)
and 12.662 preferred shares
(86.63 per cent) and 39.000 de-
ferred 1 97.5 per cent).

The company intends lo ex-
tend the offers in respect of
each of the three classes of
shares until June IS.

Retained in Group

Earnings per Share

1981

£

27^25,709

1980

£

21,6924570

1^7W54

2L57J

155,676

(226,243)

. 1,456.775
4^78

381919

. 1,452,497
105^75

381,919

105,375

1,346,622

276JM4

29.05p

7.64p

The Annual General Meeting of the Company will be held at the
Atlantic Tower Hotel, Chapel Street, Liverpool, on the 2nd July
1982.

The proposed First and Final Ordinary Dividend win be paid on
the 3rd July 19S2 to Shareholders on the Register at the dose of
business on the 11th June 1982.

WML 1

Bristol Waterworks Company,
3=25 Bridgwater Road, Bristol BS997AU.

SHARE STAKES

Jayplant — Nicholas Langley-

Pope, chairman, has acquired

60.000 ordinary sharps making
interest 6.7S4.312 (38.27 per
cent).

London and Lennox Invest-
menl Trust — London and Man-
chester Assurance has purchased
a further 50,000 erdraary shares
making holding 2,167,555
ordinary 112.07 per cent).

Cole Group— BRP Securities
subsidiary of Bajau, holds
284,500 ordinary shares 19.5 per
cent).

Modern Engineering of Bristol
(Holdings) — J. 0. Adler,
director, notifies that 341,249 )
shares have been transferred to
beneficiaries under trust. His 1
resultant Interest as trustee is !
170,625. shares 15.69 per cent). j
VfUoef ' (formerly. Hallam
Sleigh awl Chest on) — The Iron
Traders Employers Insurance
Association. has purchased

565.000 new nil paid ordinary
shares. When call is paid this
amount will represent 6.5 per
cent of total issued equity

capital-

Mercury Money Market Trust
— Nntraeo Nominees have
increased their holding from
9.84 per cent to 2052 per cent.

FLEET STREET LETTER PLC

Publisher, of Britain’s oldest financial newsletter,
the Fleet Street Letter
—established 44 years—

Record Profits

Substantial dividend increase
. -k Excellent cash resources
Summary oE Results: ” • •

to 3L3.S2

Turnover £871.000 £671,000 - £407,000

Pre-Tax Profit " £412,000 £301jM» £111.000

Earnings per ordinary share 6.0P 4.5p L8p >

Nett div. per ordinary, share ■ -S.5p 0.4p ■ — -

If you would like a copy of the Report and Accounts and
further details of the Fleet Street Letter please write direet to

FSL at 3 Fleet Street, E04Y 1AU. .. .

1961

£ 671,000
£301.000
4.5p
0.4p

2980.
£407,000
£111.000
L8p >

Name

Address

LONDON TRADED OPTIONS

cat., Pot. 327

,8. Total Contract* 1,5B ? , ’ Jan.

fSSn voU

accounts it is revealed that the
company is the owner or lese&
nf properties casting a total of
£1.8m, each of which is let or
sub-let to a director at a rent
equal to the annual value of the
property concerned.

Each director with the - excep-
tion of. Sir Derek Rayner, a
managing director, also has an
Option to purchase the com-
pany’s interest in the property
concerned before the end of the
relevant lease, at its cost to the
company.

Lord and Lady Sieff have a
five-year lease, as from July 24
1979, on a property costing the'
company £425.000.

As at March 31 group fixed
assets amounted to £1.12bn
(£653.7m) r current assets £3 12m
(£26S.9m) and current liabilities
£3692m (£299.1mi. Total capital
employed was £1.12bn (£64S.4nj)
and ordinary shareholders’ funds
totalled £L06bn, against £5 96.4m.

A statement of source and
application of funds shows a
£1.7m decrease in working
capital, compared with £44 m last
time. Cash and short, term funds
at the year end were £15L5m
(£12L6m). .

Meeting. Royal Lancaster
Hotel, W, on July 1 at 11 am

Please send me a copy ot your Annual Report and .details
of tb? newsletter-. ... FTR

BP (C) !

BP »p»

BP >p>

GU tc>

~on*. Old !oi
Son*. Gld ig)
(ant. Old (pi
On*. Gld (pi
Op*, i e)
CttfctOJ
GE (q>

GE (cl
GEtio)
GECrp)
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Gr’d to)
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Gr*d Ut. <oV
Gr*d Mt tpi
Gr'd Me.' (pj 1
1CJ (cj • )

icr (ei i

1C1 (C)

ICI »P) -
JC1 tpi 1
Land Sac. Oj

— . 166
1 . 122
6 82
_ : 17

13 '

_ ' 60
67 I 3*

a I 2s

t }i

_ ■ 56

4 38

3 . —

2 esp
2 • ..
- ;957p

- 230p

Land Soc- t>; 280 I

Land See. tc 300 [
Mks Sc Sp. Ic. : 130 :
Mks A Sp. lei. 140 j
MksftSp.ttrt 160 !
MKsftSp.(cn 180 '
Shall (cl i 420 1

Shall lei 1 460 ;

Shall ip) j 390 j

Shalt (pj | --20 |

- I69p

try will require to re-recruit
skills, but although higher tech-
nology may mean fewer vacan-
cies. this is unlikely to reduce
significantly the resources which
have to be deployed on recruit-
ment," he says. !

Demand for temporary staff
remained more buoyant than i
that for permanent staff !
throughout the recession, while '
the bureau had a “moderately-
successful year” in both Austra-
lia and the U.S„ where it has i
opened a new branch, he adds. |

At the year end shareholders .
funds stood at £3 .2 6m (£4^2 2m)
and fixed assets were valued at
£2.96m (£2.33m). Net current ,
assets came to £1.44m (£2J2Sm)
including bank balances and '
cash of £lm (.2.87m). During
1981 there was a decrease in
working capital of . £2.32 zn
(£603,598) and hte remunera-
tion lo each of the joint chair-
men rose from £52,808 to
£56.570. ...

Meeting: Europa Hotel. W.
July 5, noon.

Barclays (e) I
Barclays («
Imperial f«-
Imperfai (ci i
Imperial (c> ,
imperial ip) |
Lasmo (c) (

Lorirho (o)
Lonrtto (cl
Lonrho (c) ■
Lonrho (p) •
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Racalici
Baca) ic)
Race! tpi
Rasa] tpi
RTZ (cl
RTZ-(C) ;
RTZ to) .
RTZtp) ’ I
RTZ (p| |

Vaal Rfs (cl l
Vaal Rf*. (ci ;
vaal Rfs. ip) :
Vaal Rfs. (pi I

51

4 1

34 :

—

XX >s!

93

IT ,

—

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24

6

5 1

22

34 :

2

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*

17 ;

17

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14

14 1

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17

August

November

33 |

28 1

48 !

—

10

5fr ;

25 :

—

211 a

2 l

25i.

16 1

i* i

SO ■

- Ml*.

1 i

61.

160 :

9>3

21 ,

February
- 473p

34 -

131* —

61a.-. .-
2 is- 110
5 , -

13 . 2

22 ■ 26
10 I —

1 '527p
17 6Bp
1

!S ;

Jj to
12 :

Z 1 * ■

4 MO i
3>4: a

-6* I :

70 1 —

43 1 —

27 —

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58 13

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- 40

1 19

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2 |I51p

37 ■ 10
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- ! 946*

RESULTS AND JCCOUNTS IN BRIEF

M OR LAND SECURITIES — Inca, redurw £580.870 (1586.162). Pro -la*
£14,000 (£32.000) for am months profit £45,018 (£21.861). Tax £15.854
September 30, 1981. Pn-px pr<4 (W.638J. Earning* per £1 ehare 10. Ip
£8.000 (£21.000). Tex £2,000 (£8,000) CC pr *- m profit • £33.000

^ ..^...71'™ "L J LAND SECURrriES INVESTMENT.

LAND SECURrriES INVESTMENT
hVd t,m TRU,T developmant and

activeiy traded 1 or aaverat month*. Ba-^^ 31 * iSl naorruT 18

sutu eh own Include income derived «

SS ' **"•■-* Tr: T’T ^SSSL. nSSb' -itvSta":

"at-srs assjjs.fffisiffiisj!:

*1 **" G 1 *!"® ^•lioJders'fUPds £1.S8hn (Cl 43hn

dauris of remdu of ■cwilM'niMd C^Bitmenu, lor (ututo capita 4
pn by cotnpiny-for &e year .irtfud.og «)4litu«. £«».2m (£80 3m). mad*
reaufu at mdaiged flfouii tor three euthorjaed hut not contract^

month, to the .yeai-end-. • - (£13.5m) and under coniratt

(C4S 8m) DecraaaQ in w>t
>«t».Dund* £21^21 m (E88.2Em in-
«•*: MateMHi: D«von4>uia House.
*■ -y 5, . noon.

BARLOWS {-packer end warehouse^
man) — Dividend Gp (4p) .j«tt for ' 1961.
Group ru mover exeludtag - fmgltt

Mysan borrowing limit up

CARR’S MLLING
INDISTRIELPLC

interim Statermjt

’ ZTineksto 2ftefoto 52w9oksto
' 6th March 2&Fob., 29th Aug^
1982 W 198 1

? £ £

Sales ‘ 23,966,000 2Tj5,000 40,208,000

Less Inter-Company Salas of • « .

products tor re-procassfng 2^76,000 2,^000 ■' 5,437,000

• ■ ciSa. J - .

Sales to External
Customers

. 20,990,000 19,0(qoq . 34i771,000

Profit before Taxation
Estimated Taxation

678,000

37,000

749.000

138.000

Profit after Taxation

541^000 453)o 611,000

Net Profit attributable to i
the Group

541,000

610,000

The figures for the 27 weeks to the 6th March, 1&{ a nd for the
comparable, period of the previous year) are unaudb Estimated
taxation for the periods of 27 and 26 .weeks Ish'e Advance
Corporation Tax levied upon the interim dh/ldeW declare
Estimated taxation of £138,000 for the 52 weeks to29H U aust 1981
includes Advance Corporation Tax of £91,000 on the emends paid
for that year. .

Although a satisfactory level of turnover was achieved our flour
mining, animal feedingstuffs and bakery businesseshmoetiMvo
pressures kept margins tight and this trend is contirhn Grm.n
profits reflected better results from bur agricultural in tests anri ir>
particular a strong and sustained recovery by our rricutinr^i
merchanting subsidiaiy. r ncu(tural

The Directors have declared an interim dividend on Wording
Share Capital of the' Company for the 53 weeks Hjlm ffh
September, 1982-of l.75p per share (interim dividend 198 25 Dr Jj
share) The dividend declared will absorb £87,500 of the prc'anS !

XlZi+SSE ' J -'* 1982 lo ,hosei reoisl8redl asl

Cartistc, 8th June, 1982 tat C S rr lkirmsn)

V';

5- • 'T.&pH

•■■Mm

This advertisement is issued m compliance with //«
requirements of tlie Council of 77ie Stock Exduuigc

Midland Bank pic

{.incorporated in England, Registered 14257)

... Issue of '

diingfrtJi..

Application has been made to the Qiiint-ii r,r*n. .

the market on the data ofpubjicatioji ofthU adTOrtiKfli 0 ^

such offer or sale would be prohibited by Jiw ^ lcll °nwlicns

Particulars, or the Slock will be - ,

Statistical Services and copies of the ParrirnV 1
obtained during usual business lioura on ^, ^ ™?y

pub!ic Mida ^ w

: ,bj

I982£rom: .

Samod Moaifagn & Co. limited,
ni'OWBroaffStr^- “
Iondon.ECZP2HYo

.9tfrJinMv 1982 v

IS*

• financial Times Wednesday June 9 1982

Sr^SoUK COMPANY NEWS

MINING NEWS

» •- $

f: ■

h • w :

57 J J<. •

*N BRIEF

Maibl advances by 12%: Good payments
makes new debt provision from Libanon

BT. PAUL TAYLOR

IE OLDEST of the UK-based- year, retained profits decline- by prudent to make specific provi- rCr -I 1 A Al^ll | AIIT AlTl
osortium baitfts, Midlan d and £904.000 to £4.4lm. sions in respect to loans to some VrA MB M. U 1 1 1^,13 1 B m.

BT. PAUL TAYLOR

THE OLDEST of the UK-based-
consortium banks, ti»d

International Banks (Maibl),
which is 45 per cent owned by
Midland - Bank, yesterday
announced pre-tax profits up by
12 per cent at £12-7m in the
year ending March 31.

After tar of £5.7nx, profits in-
creased by 15.4 per cent to
£&98m.

- A new general provision for
doubtful debts of £5 .8m— reflect-
ing' growing uncertainties in
particular parts of the world
like Latin America, following
the Faiklauds invasion, and
Poland — was precisely matched
in the consolidated profit and
loss .account by a tax credit
generated by further reducing,
the provision for deferred tax.

- After payments to minority
Interest and a final dividend of
£2.5m compared with £2.2m last

year, retained profits decline- by
£904,000 to £4.41xn.

.MaiM’s total liabilities- in-
creased from £I.24bn to fl.4ba
after £5m retained earnings ware
capitalised by issuing 5m new
£1- Shares to existing share-
holders on a one-for-four basis.

The accounts also reveal a sub-
stantial increase in the .bank's
lending last year. Loans . in-
creased from £5S5m to £710m
and, foil own g its new status,
from August Z98Z as a bank
whose hills are eligible far dis-
count at The Bank of England,
acceptances grew from £ 19.7m
to £87.fim. .

Sir David Barran, Who retired
last week as chairman and was
succeeded- by Sir Donald
Barron, Midland Bank ebadr-
' man, said in his statement that
the increase in pre-tax profits
was a “worthwhile achievement
m a year when it has become

prudent to make specific provi*.
fiions in respect to loans to some
customers and to take profit in-
terest on receipt and not on an
accrual b&mis in those cases

-where we have any doubt what-
soever about eventual receipt.”

- T3ie bank does ont reveal its
exposing in particular countries
although Mr J. Jennings, the
managing director, said the
bank’s exposure in .Poland and
Argentina was such that “I
could write it off and you
wouldn’t even notice' it.”

Maibl, -whose other Share-
holders are the Toronto-Domi-
nion Bank group with 26 per
cent. Standard Chartered Bank ,
with 19 per cent and the Com- !
merc&al Bank of Australia with 1
10 per cent, has again had its
accounts qualified by auditors
Ernst and Whinney because it
does not provide current cost I
accounts:

Pentos continues legal fight
and sees much-improyed results

Pentos, the diversified bolding
company, plans to sell off
peripheral assets worth £2m this
year while continuing legal
actions arising from its acquisi-
tion of the Caplan Profile group.

The company, whose interests
range from Athena print shops to
engineering, construction and
office furniture, expects a sub-
stantial improvement in this
year's results, the chairman, Mr
Terry Maher, told yesterday's
annual meeting..

Pentos has .no plans for the
sale of further mainstream activi- !
ties. This follows the disposal of
'Cedarworth Homes, including
some property, for £2. 63m and a
fa.4ra management buy-out of
halls Homes and Gardens earlier
this year.

The company intends to pursue,
claims against Siugei; and Fried-

lander, financial advisers tq the
Caplan ' . group, and . against
Malvern and Co, Caplan's
auditors, Mr Maher said.

Pentos bought Caplan In 1979
for Pentos shares then worth
just over 17m. It subsequently
discovered net tangible assets,
put at just over £3m, had been
overstated by £950,000 while
profits for the year ended
August 31, 1979, forecast ' at
£L4m emerged at only £769,000,

Claims against Caplan's diree-'
tors and. shareholders and
against Pentos* own auditors
have been settled, although
liability was denied. Pentos has
received payments and credits
worth £454,105 and is entitled
to receive a further £700,000
from the Caplan family on or
before December 32, 3984, Mr
Maher said.

The remaining claims, which
have been denied, against
Singer and against Malvern are
due to be heard by the High
Court in October.

Pentos takes the view, on the
basis of legal advice, that its
prospects of success and the
size of its claim against Singer
makes it imperative to press an.
Prospects of success io the claim
against Malvern are also good
although there may be difficul-
ties in full recovery, Mr Maher
said.

Pentos significantly reduced
losses in the first four months
of the year, he told shareholders,
which was due to reduced costs
and interest charges. Export
sales rose slightly but there is
no sign of any recovery in UK
demand.

RECORD BONUSES^
NEW BUSINESS GROWTH
FORNPI IN 1981

DCTRACTFRbM CHAIRMAN'S STATEMENT NPi ANNUAL REPORT FOR1981

' • . -.1981:- was a year of record bonuses, successful new

business growth, and product innovatioa 1982 will be marked •

• by our entry Into the unit-linked market with a range of new
(Xintracts for savers and for the self-employed.

■ New. annua! and single premium income increased by .

35% from £26m to £351im. The self-employed pensions
market was particularly buoyant following the increase in
contribution limits permitted by the Finance Act 198(XOurSelf-
. Employed Retirement Plan is an established market leaderand
a substantial increase in its sales in 1981 demonstrates the
continued support which it attracts from policyholders and
their professional advisers,- . ■

'. Recent improvements to this plan have increased its
appeal and flexibility. In April we introduced a Joanback option
- in fact NPI was one of the first traditional offices to offer the
facility and the first to offer it with a waiver-of-premium option.

-Company pensions business was slightly lower than in
1980 , but the outcome was creditable against the background
of the recession and the redundancies suffered among some
. . of our corporate clients. In August we introduced a loanback •

■* option to companies holding our Capital Pension Plan for con-
trolling and substantial directors.

The borrowing opportunity which loanback provides
has undoubtedly-contributed to the continued popularity of
.our pension contracts: Some people have questioned the -
advisability of loanback arrangement* but I have no doubt
about the benefit they offer as a fell-back facility provided that
sensible provision is made for the repayment of the loan.

. During the yeac interest rates continued at a high level,
and the successful management of ourinvestments enabled us -
J - - to declare at the end of the year record rates of reversionary
. . bonus on our assurances and on pension contracts for the self-
employed/IerminaJ bonuses were also raised to recordlevels at
tlie year end and the qualifying period was further extended. .

This increase in terminal bonus following previous increases at
- - the end of 1980 and in May 1981 is further evidence of our
: • endeavours to pass on investment profits to policyholders as
' promptly as we can prudently do so.

. . The. prevailing high interest rates in 1981 have also
' . ehabled us to' -raise bonus interest on our company pensions - ..
contracts - Visible Growth Fund and Capital Pension Plan - by
making a total rate of 14%% for 1981.

In recent years; investment-linked contracts have
Increased in popularity and, to satisfy the growing demand, we

' are now introducing a; range of unit-linked contracts to

• complement our traditional policies, initially we shall have a
lump-sum investment contract, a 10-year contractual sayings

' plan and a §elf-employed. pensions policy for annual or single
: premiums-Weshall have altogether fundsover wh/diourunit*
linked policyholders will be able to spread their investments,

I am confidentthat NPfeextended rangeof contractswill enable
us to satisfy to an even greater extent the diverse needs of the

. • assur^ceandinvestmentmarketinthe1980's.

ffPS^TOUSTENTOEXPERTS.

NATIONAL PROVIDB^IT INSTTTUTI6n,48 GRACECHUICH STREEIJ LONDON EC3V0BR

BY KENNETH MARSTON, MINING B3ITOR

j FINAL DIVIDENDS declared by
the South African gold producers
in the Consolidated Gold Fields
group include a much better
than expected payment from
Libanon of 140 cents (72p).
This makes a total for the year
to June 30 next of 320 cents
against 330 cents for the pre-
vious 22 months.

Doornfonteln also conies out
well as far as market expecta-
tions are concerned with a final
of 120 cents. This brings the
1981-82 total to 200 cents against
335 cents for 19SOS1.

Kloof's final of 150 cents to
make 270 cents against 400 cents
is much in line with expecta-
tions. So is that of 135 cents from
Driefonteln which brings the
year’s total to 235 cents; it will
be recalled that the company
was created last July from the
merger of East and West Drie-
fontein.

There may be some mild dis-
appointment that the young
Deelkraal is remaining out of
the dividend list after having
declared a maiden half-year divi-
dend of 5 cents in December
1980.

■But after having shown some
recovery in the second half of
last year the mine's profits fell
back again in the first quarter nf
this year. The directors thus
state that they have decided not
to declare a dividend in view of
the low gold price and the need
to conserve cash resources.

The group's latest dividends

BOARD MEETINGS

The lollowmg companies have notified
dates of board meetings to die Stock
Exchange. Such meetings ate usually
held for the purpose of considering
dividends. Official indications are not
availabio as io whether dividends are
interims or iinsie' and. the subdivisions
shown below ere based mainly on- teat
year's timetable.

TODAY

Interims: Camford Engineering.

Comet. Westland.

Finals: Ariel Industries. Brownlee,
Cariess. Cape I and Leonard, fiactra
Investment Trust. Eva Industries. Great
Portland Estatoa. Highsms. Peglar-
Haneisley, United Eleotronic, Valor,
W. Williams.

FUTURE DATES

Interims:—

CronitB f June IS

Flexello Cantor* & Wheals June 17

Glass Glover June 29

Kenning Motor June 14

Lfncroft Kilgovr June 30

Finals: —

Anglo-indonesien June IS

Brit. Bldn. & Engs. Appliances July 8

Geevor Tin Mines June 16

HAT July 13

Wedgwood June 18

t Amended.

are compared in the
table.

June, Dec,
1982 1981
eente cents
Doclkraal ... — —

Doornfontein. 120 *80

Drielontain ... *135 *100

Klool ISO *120

Libanon 140 *80

Ventorspost . 55 *3S

Vlskfontein . 20 *15

* Interim.

following

June. Dec.
1981 1980
cents cents
— *S
200 *135

240- *160
200 *130
135 *100
10 *40

Malaysian tin outputs

INCREASED PRODUCTION of
tin cracentxaies w as achieved by
most companies under the con-
trol of Malaysia's Pern as Charter
Management last month, the
total amounting to 1,679 tonnes
against 1,578 tonnes in April.

Tronoh’s output, however, fell
to 40 tonnes from 44 tonnes in
April and the total for the first
five months of the year amounts
to 214 tonnes compared with 251
tonnes in the same period of
1981.

The company expects the
year’s total to be below that of
1981. Thus with the quota im-
posed on export sales by the
International Tin Council and
the lower metal prices Tronoh
faces the prospect of a fall in
earnings this year.

Yelverton to
apply for
USM listing

With the announcement of a
fall in half year taxable profits
from £76,121 to £20.004, the
directors of Yelverton Invest-
ments say they now plan to pro-
ceed with their application for
a listing on the Unlisted
Securities Market
They believe the company Is
poised for solid growth in Irfbth
profits and asset values they
add.

Tax for the half year to April
30 1982 took £2,400 (£142891 and
net asset value per share is
stated at 22p (same).

The results for half year In-
clude the dividend of 0.55p per
share on 2.15m shares in Burma
Mines declared on April 19 in
respect of 1981.

The big Malaysia Mining
Corporation bas produced 7,838
tonnes in the first 11 months of
its year to June 30; It was
enlarged by the merger with
Malayan Tin Dredging last year.

Also doing well is Ayer HItiwn
with an 11-raonth output of 1,569
tonnes against 1,245 tonnes a year
ago and Tongkah Harbour with
a total for the same period of
376 tonnes against 352 tonnes.

Aokam

Ayer Hitam ...
Borjuntai
Kamuming

MMC

Sungai Besi ...
Tongkah Harb...
Tronoh Mines...

May April Mar
ton nos tonnes tonnes

117 106 119

125 123 112

307 260 260

15 15 17

770 738 .758

63 85 92

23 26 53

London
Prudential
pays more

Revenue of the London
Prudential Investment Trust
came out just ahead at £320,232,
against £297,484, for the year
ended April 30 1982, after tax of
£150.360, compared with
£169,496.

The dividend is stepped up
from 4.85p to 5.3p net per 25p
share, with a final distribution
of 3.05p, and will absorb £318,000
(£291,000).

Earnings per share are shown
as 5.34p (4-96p) and after

deducting prior charges at par,
net asset value is given at I40p,
as at April 30, compared with
147. 5p a year earlier.

Gross revenue came to
£551,908 (£527,247) and expenses
and interest totalled £81.316

(£60,267).

Midland Bank
Interest Rates

Base Rate

Reduces by VWoto 12V£%-
per annum with effect from
8th June 1982.

Interest paid q uarterly on 7 day deposit accounts-
reduces by iMbto 9 J /2%p.a. with effect
from 8th June 1982. APR 9*8%.

Abatement Allowance

On ledgercredit balances of current accounts which
are subject to the standard personal current account
. tariff and do not qualify. for free terms reduces by
1%to 6fobp.a. with effectfrom 9th June 1982.

|fi Midland Bank

Muttnd Bank pic

1 British
|| Investment
O Trust

Highlights from the Report and Accounts for the year to 31 st March 1982.

Year to

Total

Assets

Total

Revenue

Earnings

Dividend

NAV.

31 st March

£00015

£000’s

P-

P-

P-

1977

118,353

5,325

4.36

430

175

1978

126,015

5,603

4.80

4.85

188

1979

139,461

6,158 .

6.11

5.70

211

• 1980

122,829

8,315

8.18

7.85

184

1981

' 157,010

9,719

9.48

8.85

241

1982

162,214

9,578

9.33

920

249

DIVIDEND— UP 4% , _

The dividend of 9.20p per share compares with 8.85p last year. Over the last 5 years
dividends have increased by 1 14%, significantly more than the rate of inflation.

NET ASSET VALUE— UP 3%%

The continuing world recession had its effect on most major stock markets last year. ^
In the U.K. there was some overall appreciation in equity prices over the year and the
gilt market performed particularly strongly in the March quarter. There was a fairly
large fall in the U.SA. stock market but the strength of overseas currencies against
sterling improved the value of the overseas investments.

EARNINGS— DOWN V£%

There was a small reduction in gross revenue largely as the result of action taken in
the previous year, which reduced franked revenue from U.K. equities and revenue
from properties, but increased revenue from gilts and overseas investments.

PROSPECTS

The Board is reasonably optimistic about the outlook for the U.K. economy and the
potential for an eventual strong rebound in corporate profits. It is the intention to
switch from gilts back into equities in due course. In the U.S.A. there are some
encouraging signs for the future and although the economy is expected to remain
sluggish in the short term the diversity of investment choice continues to provide
many attractive opportunities. In the current year the Board expects revenue and
earnings to show some improvement over the level of last year.

Copies of the Annual Report and Accounts may be obtained from the Secretary.

The British Investment Trust PLC, 46 Castle Street, Edinburgh, EH2 3BR. Telephone 031-225 2348.

Holdings

mmm Extracts from Mr. F.R. Bentley’s Statement circulated
wrth the Accounts for the year to 29th January, 1 982

It Is" pleasing to have a more favourable result upon which to comment There has
been strong support from within in both productlvity'and economy of overhead The
Group cash position has moved from net borrowings of £3,961,000 at the previous
year end to a small credit balance giving us a sound cash base to finance hopefully
increased working capital requirements and expansionist projects. Whilst there has
been some short time working our manning levels have virtually been maintained

These.ihings are a source of comfort but are to be measured against current trading
conditions which continue to be adverse. The order intake for work to process during
the year, particularly in the first half of the year, showed disappointment at both
Hopkinsons Limited and J. Blakeborough & Sons Limited. The former still has short
time working and the latter a less than acceptable work load of higher margin
products Bryan Donkin Company Limited whose contribution to the results was
maintained continues to perform well though affected by the home trade recession.
Wolstenhoimes (Radciiffe) Limited has lived with a lacuna in forward work which
moved ahead during the year to yield a reasonable result but this gap still besets it
John Moricrieff Limited was and still is in adversity through continuing problems
following the furnace re-build and shortage of orders despite the closure of
competing producers.

Whilst we have reasonable order books they are not at present phased as one would
wish but we have a strong base aryl are trading profitably overall

In the light of the foregoing, your Board is recommending a scrip issue of Ordinaiy
shares on a 1 for 6 basis participating in the final dividend for the year.

RESULTS FOR THE YEAR ENDED 29th JANUARY, 1 982

1982

1981

£’000

£'000

Turnover

54,714

44,013

Trading profit

3,708

2,118

Profit before taxation

3,487

1,650

Profit after taxation

2,606

1,665

On 11.2m Ordinary shares In issue at year end .

Dividend*

5J35p

5.65 p

Eamings

23.11 p

14.70p

•Ffnal dividend of4.1Sp for year ended 29th January, 1992 also payable on Scrip issue.

Hopkinsons Holdings p.U., Birkby Grange, Huddersfield HD2 2XB

7Ziis Advertisement h issued in compBanee with the reqakvmenxs of the CauncB of The Stajs Exchange

McCASTHY&SIONEpIc

Authorised

£

2,000.000

(RogatDrBdtn England Ne. 1146644 )

SHARE CAPITAL

Ordinary shares of 20p each -

Issued and now
being issued
fully paid
£

1,666.660

Placing by

COUNTY BANK DMTTED
of 1,249,995 Ordinary shares of 20p each
at 137p per share

M<£arthy&Stonepfcpfrapa^ constructs arnfsefeshetaredacco^^

«pectalseajrityandtffterarnenWes,farflId^ ■

AppBcatkin has been made to the CMnci oTTTm Stodk Bcehaigs far thewhotooftittbsusd 8.333,300 OrdneyElvw

of 20p4Kh in ttv capital t)( the Company tobaidntittad io thaUnRstadSocuritlnMarkat. A propwtionodtnEbareB

bang placed is anUabie w the pubfic tfnuflh the market. It it emphasised that no sppGatbn hw been made fa- thus
cocuritiec to bo wkiuttod io lining. Panksdare of the Company vs avaSable h the Enel Untuned Securitaas Market Sendee
and copies of *uch pvticufars may be obuiwdfkringusudbusingsshQwaoaanywaskdBy (Saturdays and Be* holidays
exoaptad)uptBapdindu(Eng23nlJup«,1982frorn:

County Bank Limited,
1 1 Old Broad Street,
London EC2N IBB

deZoete&Bevan,
25 Finsbury Circus,
London EC2M TEE

Financial Times Wedn^day. Jnne $ 1982 : ' v . , I

APPOINTMENTS

Three top men join
Standard Chartered

ENERGY REVIEW

Whitehall chill over

By Ray Dafter, Energy Editor

Sir Denis Hamilton. Mr John
Page and Sir Raymond Pen nock
have been appointed to the board
of the STANDARD CHART-
ERED BANK.

Sir Denis is chairman of
Reuters and was formerly chair-
man and editor in chief of Times
Newspapers.

Mr Page, a former chief
cashier and executive director Df
the Bank of England, is chairman
designate of the Agricultural
Mortgage Corp and on the hoard
of the Nationwide Building
Society.

Sir Raymond is chairman of
BTCC. formerly deputy chairman
nf Imperial Chemical Industries
and until recently president of
the Confederation or British
Industry.

*

Mr Robert Has lam has been
appointed a member of the board
of directors of CABLE AND
WIRELESS and becomes a non-
executive director. He is one of
two directors nominated by the
Government. Mr Haslam is
deputy chairman of Imperial
Chemical Industries.

★

Mr Anthony Barton has joined
the partnership of stockbrokers.
McANALLY. MONTGOMERY
AND CO. He continues as head
of the firm’s corporate finance
department

*

BANKERS TRUST COMPANY
OF NEW YORK has appointed
Mr Magnus Lagercrantx vice-pre-
sident in the world corporate
department. Currently based in
Frankfurt and responsible for
business development in the
Scandinavian multi-national cor-
porate sector, he will transfer to
London at the end of 19S2.

*

Follow ing the offer for
FEDERATED LAND by the Bri-
tish Steel Corporation Pension
Fund the following representa-
tives of the Pension Fund have
been elected to the board of
Federated: Mr Ctand Osborne,
Mr Paul Oldham. Mr Stuart Col-
ley, Mr Richard English and Mr
Michael Clarke. Mr Arthur
Richards has resigned as chair-
man, but remains on the board as
a non-executive director. Mr
Osborne has been appointed
chairman, and Mr Oldham has
been appointed deputy chairman.
Mr Peter Meyer has resigned as
managing director, but remains
on the board as a non-executive
director. Mr Trevor Slater has
been appointed managing direc-
tor in his place. Mr Raymond
Pyne continues as director and
company secretary. Mr Cyril

Smcltie continues as a non-
executive director.'

★

COUNTY PROPERTIES, the
development arm of Assam
Trading (Holdings) has appoin-
ted Mr Michael Burdon and "Mr
John Burnley to the board.

*

ELBAK INDUSTRIAL has ap-
pointed M Etienne Allard a
director. He Is a director of.
Tanks Consolidated Investments.
*

NORMAN INSURANCE has
appointed Mr Waiter H. Pride to
the board. He was senior vice-
president of INA International
Corpn.

*

LAND DECADE EDUCA-
TIONAL COUNCIL has
appointed Major ' General
R. P. W. Wall as its first
director.

★

Mr David E. Tench has been
reappointed chairman* of the
DOMESTIC COAL CONSUMERS'
COUNCIL. He is legal adviser
to the Consumers' Association.

★

Mr David Melzer has been
appointed director of explora-
tion and production of PREMIER
CONSOLIDATED OILFIELDS,
replacing Dr James M. Dorreen
who becomes a consultant to the
company. Mr Melzer was pre-
viously director in charge of
exploration at Tricentrol Oil
Corporation. Premier Consoli-
dated is a British independent
exploration' company.

*

Mr George D. Craigen, super-
intendent-branch department,

head office, of THE ROYAL
BANK OF SCOTLAND GROUP
has been seconded to the group
as head of group planning. Mr
W iiHam Armitage, operational
research analyst, head office,
data processing— systems plan-
ning, has been seconded to the
group as assistant head of group

pl annin g.

★

Mr Jan Capp has been
appointed man aging director of
COLOURSET LITHO, Deptford.
He was previously managing
director of the Green Shield
printing services subsidiary,
Press and Post

*

Mr James Lunn has been
appointed personnel director of
SPINNEY’S f J94S). Previously
he was personnel director of
Linfood Holding.

*

Mr Christopher Sharp has
been appointed deputy ' chief
executive of NORTHERN ROCK
BUILDING SOCIETY. He has
been an assistant general
manager of Northern Rock since
1078.

"RENEWABLE energies pro-
vide a very valuable insurance
policy.” says Mr David Mellor,
Parliamentary Under Secretary
for Energy, touching on one of
those sensitive issues that
require deft footwork from poli-
ticians.

The problem confronting the
UK is the degree to which' state
support is given to development
of alternative energy sources —
such as the power of the sun,
wind, waves and tides— at a
time when the country has mare
than sufficient supplies of con-
ventional fuels.

Risking the taunt of being
complacent in the face of energy-
seif -sufficiency the Energy
Department has Just decided to
lower Us research and develop-
ment budget for renewable ener-
gies and conservation. During
the current 1982-83 financial
year the department expects to
spend between film and £12m
os against about £13.6m during
the previous 12 months.

The department takes the
view that the current spending
level is all that is justified given
the point ‘of development of the
various energy schemes and
the . general financial bell-
tightening by Whitehall. It is
a view based on a recommenda-
tion by the Government's
Advisory Council on Research
aod Development for Fuel and
Power {ACORD).

But the renewable energy
programme — particularly one
of the most promising of the
alternatives, a possible tidal
barrage electricity generating
project In the Severn Estuary—
has also been caught in the
trap between energy projec-
tions on the one. hand, and the
Government’s commitment to
nuclear power on the other.

The Energy Department is
still working on the energy fore-
casts that will be presented to
the public inquiry into the
Sizewell B pressurised water
reactor early next year. Judging
by other projections, little
growth in electricity demand is
likely to be foreseen over the
next 20 years or so.

The CEGB, backed by Energy
Ministers, remains committed
to the view that new PWR
stations will be needed to
replace the first generation of
nuclear plants, to increase the
supply security which arises
from a diversity of- fuels, and to
peg the cost of base-load elec-
tricity generation. At present,
says the CEGB, alternative ener-
gies are not sufficiently cost-
effective or technologically

GOVERNMENT SPENDING ON ALTERNATIVE ENERGY

DEPARTMENT OF ENERGY RESEARCH AND DEVELOPMENT BUDGET FOR
RENEWABLE ENERGY AND ENERGY UTILISATION

197B/T9

1979/80

Wind

114

426

Wave

1J66

2JM3

Geothermal

. "l«‘

•1077

Solar

122

1.118

Tide

85

612

Biomass

—

117

Conservation

117

172

Coal liquefaction and

miscellaneous

28

312 '

Totals

2*524

6997

ET5U* Services

1,48?

1,916

■ Energy Technology Support Unit. Harwell

.

£*000 (outturn prices)
1979/80 1980/81

1981/82

(estimate)

1982/83

(forecast)

advanced to compete with
nuclear generation for large-
scale electricity generation.

"We are prepared to pay a
significant premium to make
sure we can. harness renewables
when they are needed,” com-
mented Mr Mellor. the junior
minister with a particular remit
for alternative energies.

But the reduction in research
and development expenditure
has angered some, including the
Friends of the Earth. A new
report* from the environmental
pressure group describes the
funding as “woefully small."

The organisation calls for a
doubling of the budget Some-
what predictably it contrasts
the funding of alternative ener-
gies with the £221m nuclear
research and development bud-
get Government energy officials
argue that it is wrong to com-
pare funding in this way given
the much more, advanced state
of nuclear power generation.
One day, they promise, alterna-
tive energies will receive the
equivalent of the present
nuclear funds.

Among others upset with the
Government’s proposals are
Coventry (Lancfiester) Poly-
technic and SEA Energy
Associates which have been
working oo the SEA Clam wave
energy device, one of a number
of wave generators being
developed in the UK. They have
been pressing the Energy
Department for funding of a

demonstration prototype. Such
a unit would provide a shop
window" for exports, com-
mented SEA Energy As so crates.

At the moment, however.
Government advisers take the
view there is nothing to put in
the shop window. They had set
a target to the' wave power
interests; produce a model
which, on the judgment of
independent engineering con-
sultants, showed the promise of
producing power for ap per
kilowatt hour and the Energy
Department would consider
spending around £lDm on a sea-
going 10Mw demonstration
project.

According to Energy Depart-
ment officials none of the wave-
power ideas had “crossed the
mimirwtm hurdle,” in spite of six
years of Government funding at
a cost of over £l2m_ ACORD
has recommended that “no new
development: work should be
supported from the depart-
ment’s R and D budget.”

There is a good deal of irony
associated with that recom-
mendation. For it coincided
with news that Japan’s Fuji
Electric has been licensed to
produce prototypes of a wave
energy device developed at
Queen’s University, Belfast. The
device, developed with a
£250.000 grant from the UK
Energy Department, is already
being used in Japan.

It was only a few years ago
that wavepower was regarded

12,600 1LQ00-12JMU

4,000 approx. 4,000

Source: Department of Energy

as one of the most promising
sources of Britain's future
energy. “Wavepower is likely
to be a front-runney for this
country among the renewable
energy sources,” said Labour
MP, Mr Alex Eadie when he
was Parliamentary Under Sec-
retary for Energy in 1978.

Certainly the 'UK seems
ideally placed to take advant-
age of the energy in waves. In
winter — when energy demand
rises — the long coastline is
pounded by waves. - In theory
wave energy could supply up to
one-third of current, annual
electricity demand. But the
technical problems of harness-
ing wave energy are consider-
able.

The Government may not
totally turn Us back on wave
energy. For R seems there is a
likelihood the Energy Depart-
ment will provide limited funds
— certainly less than £lm — for
continued research and develop-
ment work on a couple of
favoured wave power projects.

Most of this year's funding,
probably around 75 per cent,
will go on two types of renew-
able energy which are regarded
in Whitehall as particularly
promising-^-wind power and
geothermal, energy (hot r odes).

Two wind power projects are
already in hand. The CEGB is
building a pilot vertical axis
wind generator on the site of a
power station in Carmarthen
Bay. Dyfed. Under this

£500,000 project this, medium-
sized generator will provide up
to 200 kW of electricity, begin-
ning later this year. ..

A 'more ambitious project is
under way in the Orkneys wttere
two wind turbines are planned.
A consortium called the '--Wind
Energy Systems "Gronp-^cbm-
prising' 'Taylor Woodrow Con-
struction, British Aerospace
Dynamics Group, and GEC
Energy Systems—ds now.- con-
structing a ,20-metre diameter
generator..' with a power output
of some 250 kW. When com-
missioned later this year the
machine should provide the
North of Scotland Hydro Elec-
tric Board with sufficient
electricity to meet the needs of
about 150 homes.

But this is «the first step
towards the construction .of a
bigger, 60-metre diameter gene-
rator. This 3 Mw machine,'
costing around £6 Jim, is due to
be commissioned in late 1984
or early 19S5. . When fully
operational on Burger* Hill in
Orkney the generator should
provide the Hydro Electric
Board with sufficient -power to
meet about one-seventh of the
island’s electricity require-
ments.

Within the Energy - Depart-
ment it is felt that wind energy
will become competitive' wifeh
other fuels towards the turn of
the century, given the expected
rise in oil prices. (Wind may be
free but the construction, con-
version and maintenance costs
are noL) The department is
working on the' assumption that
during the next 20 years oil
prices will increase by between
50 and 100 per cent in zeal
terms.

No-one doubts that there will
be plenty of wind available. A
new bookt, published by the
British Wind Energy Associa-
tion, says there is more than
enough wind available to meet
the whole of the UK’s electricity
needs. But it was unreasonable
to accept that more than 20 per
cent of the country’s supplies
could be based on aerogenera-
tors. given the variable nature
of wind and the very large num-
ber of machines required.

In its recommendations to the
Government, ACORD suggested
that the funding of geothermal
energy projects should also con-
tinue. Although these are un-
likely to provide large-scale
electricity generation opportuni-
ties there are . many potential
“ hot rock “■ sites that could pro-
vide localised supplies of hot
water for combined heat and

• ' " -'V

power schemes, dohHstiie^fofi : ■

commercial heatings and ^per-t-
haps electricity generations
. Two types - of . geotherin tt, T
energy are being stadiedT "Si-
Cornwall the-Gainborne School^
of Mines has,, bedn impressing''
the Govermnenir wilii tiifr.'speefl C:-
with which it-has -Tieeft "aide ta> : .
drill through granite 4b hot .-city
rocks. The school may be ^asked^.’ ‘
to drill and f ractu re- finder - 1 -
rock stru ctures either iir Cdro- >
wall or. - elsewhere, such: a
Scotland or County Durham* : ;■ <_
Geothermal -aquifefc ckh'prcfc:
vide natiiraiiy-h'eat ed watea? 'Suit; * :
able for community: needs, ^
has' been demonstrated itf::
Southampton. Under a scheine^
joints? funded 'by tile- EnfJrgjr;
Department: and-
City Council, a *

drilled in Southahiptonlo tK^'r
vide heat for a new avie fconf
piex, existing council ofltes and -\
the municipal swimming: 1 bafts/

A similar project r nay" now be 7
undertaken in .

But it is tidal- powet'^bt *:
Severn Barrage - in partientot-v ■»
which provides the'CnveroniKit : -
with the opportunity of.hatrnete^:;
ing natural, renewable^ene^p-
-in commercial quantitiee iir fi t/*
hear future. ' : . : ‘ : i ;. "

As a “leadihig ''GweiBiM® ; ^
official commented* • T'JObk-:/
search into tidal This-

reached the stage where
know pretty well
It is the stage we. . are;^^-
ing to reach with dtiter f n afe ifr ,•
able energies.” • : - '-
Government studies P haws
already shown that he'

possible to generate .up te *20 :
Terawatt hours a '•
10 per cent of presedt';eimiwi& - "
demand in England aad Wslmf:
at little more than Sp kSP.hooht ’
But Ministers and offia^s:ain_ i
nervous that a Sevem^Bttrasf.
project would . neeess&tfe
single, enormous thrcrMf’.^Oiisttr
of a barrage schane'

-at £5.5bn to £9hn.-

Whichever way the-minlitera ;
turn, their postare : -iriIl : ie
viewed as an ' '

Government’s commitment; tg-.,
wards . ' renewable^
sources. - ' . ■

* "Eclipse of the ; .

of the Earth energy poper-Nd-5;- :
377 Crtv Rood. Lottdda^ECl^ .
INA- 1982: £135.
t.EncYgy Technologies,. [.
United Kingdom, vals ji -
1979; SO; £3 im&ftSSlSf;
respectively. - ^-1
*Wind Energy for the ^Ei^hticsj. r
British Wind 'Kneratff&ua&ai
1 ion: Peter Peregrimis, Sfevenl -
age; 1983; £19.50. ^

e 9

i

Coa&ai^s afld Markets

COMMODITIES AND AGRICULTURE

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Thailand

Thte Thai
manioc
for the rest
that its
tonnes win
to the

«C. — '

'has
^ to the .
of die year to
exporf quota of

he . ojjsesved, sl_ _

Tbaifommerce xoiifctzy.

Export licences ‘for manioc
exgQijts to- the EEC during the
current year to Ju fee 7 totalled
&2m;«m&es, leaves LSm for
the- rest of the: viar. Of the
balance, lm ton^W wiil.be allo-
cated for the list quarter and
800,000 tonnes fpn; between now
and the end of
9he ministry *said growers

will", not be afftcted by the
June-to-Septemief slowdown, as
this . is the rain - Reason and not
suitable for i 3110c root dig-
gta&. -He said tiere bad been
a rush for em>rt certificates
ofr-mamoc pvdwcts following
an agreement with th e EE C last
week, jo instiiite a system of
checking shivneats.

Appiicatio* in the June 4-8
period tatallc 1,074,449 tonnes.
Certificates jwere issued for
only 1 369,495 tonnes. .

earlier agreement
SCi 5m -tonnes of
facts can enter the
: at a 6 per cent
while shipments
' pay 18 per cent.

Under,
with the
manioc p
EEC tins
import
above
Reciter-

^ oil

Sur<

extfhded

)K — Thailand will

extend jts 20 per cent surcharge
crt^palf oil imports for- another
y»ar-Tntil -August 5 1983,

depntr commerce minister
Thaw# Kraikupt told Reuter.
• -Tm surcharge, ■. introduced
last^ar, is in addition to an
imjo* tsiriff. of 15 per cent
-jrlKnflnipt said the exten-
si® 'was necessary to help
fgtaers ^pd.the local vegetable
ojl industry. It had been levied
ater conplaints that prices of
imported palm oC from Malay-
sa' were more competitive than,
he localproducfs.

Statistfcs from the commerce
ministry showed last year Thai-
land im^rted SUfcn litres of
refined pdm ofl.

sugar

=.i by tbbiy rover .

tow WORLD sugar prices
■coultL cause ' a 10 per cent fall
.In the area sown for beet within
the JEBC over the nest year* Mr
Jan De Konig, Holland’s agricul-
ture minister claimed yesterday.

The Minister, in a speech read
on his behalf to a congress of
the Istematkmd. Confederation
of European: Beet Growers
. (GIBE) in Amsterdam, saad that
a redaction hi area sown from
2m. hectares in 1981/82 to l-8m
hectares lor - next year was
likely. Sugar production by the
EEC of about 15m tonnes during
1981/82 was exceptional with
the stocks bong held hack by
producers a sign of tbeir recog-
nition of this he added. -

At tiie same congress Mr
Henri Cayre, President of the
GIBE, rejected complaints from
tiie U.S. and others about the
EEC sugar export refund
astern. ■

The TJ.S. and tea sugar pro-,
ducezs bad previously com-
pBadned to GATT about EEC
pricing policies, that these in
effect meant subsidies for
exports and therefore unfair
competition. *Tf the EEC is to
join the - International Sugar
Organisation, unfair and un-

justified accusations made
against it at Gait and elsewhere
must end ** said Mr Cayre.

According to Mr Cayre prices
within the Community bad failed
to keep pace with inflation and
as most EEC exports went to
developing countries as white
sugar this did not adversely
affect the market for raw sugar.
1 - On possible EEC membership
of a new International Sugar
Agreement Mr Cayre said that
the inclusion of iso&ucose
(mainly com syrups) would
have to be considered and that
a frill disclosure of the special
provisions for Cuba’s sales to
Comecon countries should be
made. Further the current
fiaDure to make a distinction
between the market for raw and
white sugar would have to be
changed.

The International Sugar
Organisation recently agreed to
a two year extension of its 1979
agreement. During this period
discussions should be held for
drawing up a subsequent agree-
ment ISO officials are hopeful
of the EEC being involved in
these discussions as the Com-
munity has become the single
Largest exporter of sugar on the
free Toartnti

W. African cocoa
output rise forecast

ABIDJAN— -Cocoa output in the
five main West African produc-
ing- countries is expected to .rise
to over 960,000 tonnes in 1981/82
from ‘ the previous season’s
944,000, foreign cocoa experts
said here.. .

Ivory Coast output is put at

440.000 tonnes (412,000 in
1980/81), Ghana’s ait 222,000.
tonnes (225,000), Nigeria's at

171.000 tonnes (143.000),
Cameroun’s at 115,000 tonnes
(118^00), and Togo's at 15,0 00
tonnes (16,300).

The experts said this was
based on current purchases by
the marketing boards in Ibadan

(Nigeria), Accra (Ghana),
Abidjan (Ivory Coast), Douala
(Cameroon) and Lome (Togo).

Output assessment is made
more difficult by Ghana's
evacuation exercise winch has
led to 110,000 tonnes of. cocoa
held in the interior from
previous years being mixed with
1981/92 cocoa, with the result
.that output figures have been
distorted.

In the Ivory Coast cocoa
experts said purchases up to
mid-May— no official figures are
released by the Cause de Stabi-
lisation — were 412,000 tonnes.
Reuter

USSR may
delay grain
purchase

WASHINGTON — Senator
Larry ' Pressler sadd Soviet
officials told him they would
not he making any large new
purchases of grain tram any

supplier until Septe mber .

Speaking to reporters, Mr
Pressler nH, “I was told
there would not he any grain
purchases until September."
Mr Pressler met with Viktor
Pexshin, directin’ of the
Soviet Import agency* lost
week during a visit to the
. Soviet Union.

(Groin trader s here have

long been concerned that
the Soviets may be deliber-
ately refraining from buying
any grain now in an attempt
to drive down p ri ces before

they resume piadnses.

The U.S. Agriculture
Department commented on
Mr Pressler’s statement,
14 The Soviets certainly are
not going to 1 tell anyone
about their buying plans.”

When asked what motiva-
tion the normally reticent
Soviet grain tr ad ers would
have for disclosing their in-
tention not to buy grain. Hr
Pressler responded, “R was a
surprise to me and to the
(UE.) embassy."

Mr Pressler told reporters
he fek Pershin's statement
that the Soviets would not
buy more grain before
September was relevant only
as it disputed prior specula-
tion that they intended to
make large purchases of
maize fr o m Argentina this
summer.

** Some have speculated
that the USSR would buy
grain from Argentina to help
in the FaBdands Islands
situation, but I was told there
would not be any grain pur-
chases ’until September,” Mr
Pressler said.

"This is significant because
it shows the USSR will not be
investing in Argentina to any
great extent,” he added.
Renter

TOBACCO

Cuba beats the blue mould

BY CANUTE JAMB, RECENTLY" IN HAVANA

THE CUBAN tobacco industry,
nearly destroyed three years
ago.- has almost recovered. The
industry suffered setbacks when
the crops of 1979 and 1980 were
affected by blue mould fungus.

The recovery was indicated by
last year's record crop of 52,000
tonnes, and was followed by a
more modest crop this year.

“The crop which has just
ended has been normal,” said
Sr Jaime Mas, director of Cuba-
tobacco, the State agency in
charge of the industry. “A crop
between 40,000 tonnes and

50,000 tonnes is considered,
normal. We have not yet got
final figures.”

The rehabilitation of the
industry has brought exports of
Havana cigars back to near
normal levels, although Cuba is
still importing tobacco from
countries such as Spain and
Italy to shore up depleted
stocks. The imports are expected
to continue.

“ In another two years we
expect our stocks to he normal.

and then we will not need to
import any. more tobacco” Sr
Mas explained.

The blue mould fungus first
hit the Cuban tobacco farms in
1978 and about 20 per cent of
the 1979 crop was lost.- The
Cubans were unprepared for the
disease, and the following y ear
they lost 90 per cent of their
tobacco.

The industry's losses in the
two crops have been conserva-
tively estimated at about $625m.
Factories were shot down, and
over 20,000 workers were tem-
porarily unemployed.

“It was a disaster.” said Sr
Osmin Arce, president of the
Small Farmers Association in
Pinar del Rio province, which
produces 60 per cent of Cuba's
tobacco. “ We did not have the
chemicals to deal with 'this
attack.”

The island’s small farmers,
who produce about 80 per cent
of the tobacco, were hit equally
as hard as the state enterprises.
The Cuban Government, how-
ever, guaranteed the farmers

earnings.

Production in the 1980 crop
fell to about 5,000 tonnes. In
1979 Cuba imported 300,000
tonnes of tobacco to maintain
supplies tor its domestic market,
and exports were curtailed.
Cigarettes to Cabans were
rationed.

The attack of blue mould was
finally tamed with assistance
from Switzerland where a
chemical was found capable of
dealing effectively with the
disease. It was expensive, and
Swiss chemists and agronomists
were asked to assist toe Cubans
in what turned out to be a pain-
staking process of treating every
tobacco plant

The success of the programme
was reflected in the size of the
1981 crop.

“In the crop which has just
ended there has been no indica-
tion of blue mould,” said Sr
Arce. “ But we were affected
by poor weather. We had too
much min at the start of the
crop and it was too dry at toe
end.”

The recovery of the tobacco
industry has allowed Cuba to>
set about expanding the market :
for its famed ' Havana cigars.'
Tbe island has been providing
cigars for the David off label in
Switzeriand.

Sr Mas said a new agreement
has just been signed by Cuba- 1
tobaco and Alfred DnnhJll ofl
the UK The agreement becomes {
effective in September, when
Havana cigars with the PnnhiJl
label will be launched . in
London. Cuba will produce
about lm of these Dunhill cigars
in toe first year of toe agree-)
ment

Cuba is »(Tning at producing^
about 100m cigars annually,;
with most of these' being ex-
ported to Spain, Switzerland,
France and toe UK, Sr Mas 1
explained. >

An attempt is. also being ,
made to expand leaf tobacco \
exports most of which now got
to toe Netherlands, Belgium |
and Switzerland to be blended
with other types of leaf. \

Australia may ease ram export curb

BY MICHAEL THOMPSON-NOEL IN SYDNEY

AUSTRALIA’S “ hands off ”
podicy on the export of prize
merino rams may soon he
amended.

At present, there is an export
limit of 300 rams a year, for
in the great Australian outback
the merino is idolised for its
links with toe pioneer past,, and
for its crucial rede in the
establishment of Australia’s
fanning wealth. •

The export of merino rams
has fuelled controversy for
more than 50 years. But fears
that the export of prize rams
would create a wool mountain
overseas — notably in Russia,
South Africa and South
America — hare been dismissed
as unfounded.

Recently, the Merino Ram Ex-
port Review Committee toured
five main wool-producing coun-
tries. It discovered that there
were now more merinos out-
side Australia than within it,
that foreign merino genetic
material was in some cases as
good as Australia’s and that

there was little evidence to sup-
port the view that ram exports
were threatening toe home wool
industry.

In spite of Australia’s mineral
and mining wealth, toe merino
and its wool are still crucial
earners.

In Canberra, toe Bureau of
Agricultural Economics says it
expects the value of the Austra-
lian wool dip this year to rise
approximately in line with auc-
tion prices, to around A$L7 4bn
(£L02bn).

In 1929, when increased inter-
national competition was
threatening the livelihood of
Australian producers, the fede-
ral government embargoed the
export of merino rams.

In the early 1970s the ban
was lifted, to be reintroduced
in 1973, following a referendum
among growers. It was eventu-
ally relaxed, though same graz-
iers, and some trade unionists,
are still overly-touchy on toe
export of rams.

The report of the ram export

committee has gone to tbe
Minister for Primary Resources.
The report recommends that toe
present export limit of 300 rams
be maintained, at least until toe
stud industry has.' formulated
dear long-term views. But it
says rams worth less than
A$ 1,000 should have bo export
restrictions placed on them.

The minster has asked for the
official reaction to the report of
the Wool Council of Australia,
as well as toe Australian
Council of Trade Unions,

What seems likely is that
proud Australian rams wall still
be sold at public auction, so as
to give Australian’s own graziers
a chance to bid.

In the corridors of world
trade, liberalisation of the
merino business is unlikely to
produce a ram jam. But in
Sydney's woolier circles last
night, it was speculated that it
might conceivably produce a
potent new market — merino
ram futures.

Record rapeseed
crop forecast

THE EEC rapeseed crop could
increase by 15 per cent or
around 300,000 tonnes this year
tb a record 2-3m tonnes, accord- .
ing to the Hamburg-based
weekly publication' - Oil World.”

Such an increase would be
almost doubt the 1979-80 figure (
of L2m and 2| times the 17977-1
1978 figure of 931,000 tonnes. .{
Reuter , !•

Western Europe )
eats less meat

By John Wicks in Zurich

MEAT CONSUMPTION in the.
12 main West European,
countries fell by 33.1 per cent
by weight between 1970 and:
1980, according to the European '
Confederation of Agriculture
(CEA) in Brugg, Switzerland.
This represents a drop of 22.4
per cent in per-capita consump-
tion. Demand for meat declined-,
by a further 1.4 per cent in 1981,
the confederation adds.

:-:r.

,‘rc

E=3S '

LONDON OIL
SPtiT PRICES

“ (Chan go

1- Latest H- or—

GAS OIL FUTURES

- Afur opening around SI -50 highar.
tho marfeat aaaad off to roflder an aaalar
physical market. A rally in New York
strengthened London, reports Premier
.Men'.

-ffSTr

CRUDE Oifc-FOB (Spar barrel)

African ( Bony U'ny/fiS ,BB-35.7q->-.T.B
PRODUCIt-North West Enropa t0|m-) -

Heavyfuetoll i 165-171 \— Ls

GOLD MARKETS

Golr rose ?6 to $3303301 in the
Loudon bullion market yester-
day. It opened at $3304-331$, and
was find at $330.90 in the morn-
ing, and $328.75 in the afteruoou-
The metal touched a peak of
$3314-332, and a low of $328i-329-

In Puis toe 12* kilo gold bar
was fixed at ,FFr 66.000 per Wo
($330.68 per ounce) in the after-
noon, compared with EFr 66,000
($331.23) in the morning, and
FFr 64,400 ($322.37) Monday
afternoon. . ' ■

In Luxembourg: the 121 Mlo
bar was fixed at the equivalent of
5331.50 per ounce, against

,YsstWiFF<»r

oloM I — Donp

Jtrns. —

July

August.

Oct.

Now —

J 301.00

Feb...

Turnover:
tonn

■IUS.B
per tonn«
■894.60 ■
Z92.75
293.35
292J35

294.50

296.50
29B.0O

-ajaknjwajB

^2ML7Wa.B0
lisB.guuo

M-Mj:

+ 0.6Qj. — '

$323.45. '

In Zurich gold closed at $327-
330, compared with $323,326.

In Frankfort gold finished at
$329330, against $3241-3254.

LONDON FUTURES ,

Month

Yeaffrdoy’B
doe# .

+or

Burinesa

Don*

Augusts

Sepfmb’r

October—

November

December

A per troy
ounoe
TW.OB-SwW
lB9.7M.0a
. 191.7B-Z.1tt
198.88-4.tW

i-sxas

+3.BW

f4.«M

189X0-7 AO

19tB

196.984.79

Turnover: 821 (SJZ), tots of WO troy
wts.

Commodity

Analysis

Limited

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now available from:

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to Uxbridge Road
London Wt3

^mprenene
-ina lysis of
80/81 is n

CLUBS

WUTOVMIAM Niwrcunr i

Hanorer Street. Wl. Wher,

neomen «* an
loo evening. Charmhe
log partners eraUable

.IJiBbUllllllUP ■'

0269 .

to ring tor

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foreign companies

Fail confidence end dUcrctha
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7 Rue Mtny. 1307 Geneva
Teh 2«*40 - Tatar 23342

CLUBS

THE GASLIGHT OF ST JAMES’S. LoodOrt’*
moat exsfclTHi (wftnafMwi'X idgM ctotr-
Ne mmnbwiUp needed. 2 ban. dozens of
denceeble oompeqWtts. Mrtgnlne Cabanc
Acts- Hew i»ur 8-9 am. ir reonked
superb t tHf co ar s e dinner, only £9.75,
plus sendee epd tw. EnUene* fee £5.79
t£3 r e f u n de d to djoen onterfns beSire

9 pel. Open Mon^Frt. 9 pm-2 am. Sat.

9 pm-2 we. 4 Dnka of York Street, wl.
Tel' 01.-439 7242 .

EVE ims ontHwed tte others became of*
oollcr of Mr play end vetae ter mew.
Saooer Trom 10- iso ea. Dtxo end too

BRITISH COMMODITY MARKETS

BASE METALS

AMERICAN MARKETS

Bas e M e t a l prices gained ground bur
closed below the day's highs reflecting
the decline in sterling eag iwst the
dollar. Copper touched £783 in Initial
dealings, boosted by overnight gains
on -Coma x, b ut subsequently eased to
ctaee et £778.5 whh trade selling noted
in the morning rings. Lead, was finally
£304.5, after £307. aided by Commission
Hous e buying while Zinc dosed at
£399.5, after £402 In response to tho
Asarco producer price rise. Tin e nded
at £5,6423. Aluminium et £537 and
Ntcfcel et £2^35.

504.00

2.157 (1.746) lots uf 100

Cash.

3-mtlu
Settlem’t
Cathodes
Cash— — |
S months
Settfemt
UX Prod,

s-m.

+ oH

PJIU

+ or

Official

Unofficial

— t

*

£

* -

’ A

760.5-1

+5

753-4

+BX

777-.S

+b

77BX-80

+b

761

+5

—

—

74LUX

rHXfij

744.5-5X

+8.6

788X

+3.76!

770X-1

+5X

748.6

+44

— .

—

•68-76 1

—

Copper — Amalgamated Meal Trading
reported that in the morning . caah
Higher Grade traded et £751.00, three
months £782.00. 81.00, 80.50. 80.00.

78.00, 7730, 77.00. Cathode* , three
months £789.00. Keri m: Higher Grade,
three months £777 £0. 77.00, 77.50,

78.00. Afternoon: Higher Grade, three
months £778X0. 77X0. 78X0. 78.50.

78.00. 78m, 79X0, 73.50. 80X0.

Cathodes, three months £771.00 . Ker bs:
Higher GraSb, three months £782.00.

81.00, 80.00. 79X0. 80.00. 79X0. 79.00.
78.50. Turnover: 23.300 tonnes.

June 8

June 7

Close

Opening —

Morning fixing —
Afternoon fixing.

OoW BuUtoo (fine ounoeh

ann»ns. (OIWH-IMla) [83 34-324 *« t£181-281la)

iu$T £5SS5Si w

(S&4X71) . 8s&25 .(£181.776)

Gold Coin

Krug rod 833834-839 «« 1

SSs Bar^sBa

New SOV f78to-70 (£44-44J*>

is June 8

sxstm'bsss ess ‘S

1 1

TIN

a m.
Official,

+OT.

P-m.

Unofficial

+or
— 1

Hleh Orode £

£

£

£

6840-50

+36

6840-80

+96

6636-45

+46

666080

+«b

6650

+30

—

6640-60

+66

664060

+96

683545

+46

664090

+ 78

settlemt

6660

+sa

—

fRreJts t

J82SX1

' -i— r-~tl

•—

— ....

HewYorK

—

Tin — Morning: Standard: Cash £5X60,
45. 40, three months £6.850, 80, 50, 36,
40. Kerbs: Standard, three months
£8,640, Afternoon: Standard, throe
months £6,660, 50. Kerbs: Standard,
three months £6.640.' Turnover: 1.805
tonnes.

LEAD

a^n.

Offlrial

+ 01

H-m.

Unofficial;

+ or
■ -t

*

-*

£

£ •

B92X-3

+4

293-4

+X

302.5-3

i+2'

S04.J5

VI

Settiam't

293

+4

—

mememm

VX- Spot

—

i^S 5-7

r —

ZINC

wn. .
Official

+ or

■ p.m.
Unofflelal

=5'

£

&

£

£

Cash

597-8

+2

396-9

+7

3 month*

597-B

3SS-.0

4-7

S* ment-.

398

+8

Primw'ts

—

i — ..

■32-37.79

— -

Zinc M o rn ing: Three months £399X0.
97.00, 36.00. 97.00. . Kerbs: Three
months £368X0. 99.00, 99X0. Afternoon:
Throe months £399.00, 96X0, SBXO.
Kerbs: Three month* £401.00, 400X0,
399X0, 98X0. Turnover: 21,225 tonnes.

Aluntinm

a.m.

Official

■f-or

p-ffl.

Unofficial

*4 r

spot.

3 months

£

516X-6X

536-JS

£

+1.76

+2X

£

617-8

537X

£

+4XS

Aluminium— Morning: Three months
£339X0. 38X0. 38X0. 37X0, 37X0, 38X0.
Kerbs: Three months £536X0. 35.00.
Afternoon: Three months £537X 0, 37 X0.
37.60. Kerbs: Three months £538.00,
37X0. Turnover: 7X00 tonnes.

NICKEL

tom.

Official

+-DT

P-m.

Unofficial

t"?

Spot- —
a months

20BO-9OO

2935-40

f-ISX

+6

2810-20

294060

+30

+1ZX

Nickel — Morning: Three months
£2X41. 40. Kerbs: Three months
£2X40. Afternoon: Three months
£2,945. 50. 45. Kerbs: Throe months
£2X50. 25. Turnover 720 tonnes.

* Cents per pound. 4 MS per kBo.
t On prawn* unoSoM

SILVER

Silver was fixed 8.6p an ounce higher
lor spot delivery In the London bullion
market yesterday at 339£p- U.S. cent
equivalents of the fixing levels were:
spot 806 Xc, up 16Xc: throe-month
830 Xc. up 17.2c; six months 053.2c, up
18c; and 12-month 587.4c, up 18.8c. The
metal opened at 341-3440 (612-61 5c)
and closed at 339-342p (60*-B08c).

SILVER

Pec

troy oz.

Bullion

fixing

prtaa

+ or

1

LMX

PJTL.

UnofflcT

+or

Spot

3 months.
6 months,
llmontha

539.80p

360X5p

360.55p

3B2X0p

+8-60

+9XS

+8.11

+B.T6

339Xp 1
249. 5p

+9J

+9J6

COCOA

Yestiday s
Close

+ OT

-

Business

Done

July

892-93

+19.0

893-71

Sept.

Dec. ...

957-58

993-94

+ 16X.
+ 16X

95867

995.75

May..

July....

1015-1000

1035-36

+ 17.0
+ 14.5

1019-01

1057-66

Sept

109367

+13.C

* —

. Sales: 1X92 (3,879) lots of 10 tonnes.

JCCO— Daily price for June ft 71,43
(70.56). Indicator price for June 9:
71.20 (71.21).

COFFEE

New York based gains of £12.00.
16X0 met resistance, reports Orexel
Burn bam Lambert. A continuation of
the firmer trend in New York together
with lower sterling encouraged a minor
recovery.

COFFEE

Yestarday’s

Close

+ or Business
— Done

£ per tonne

July

1219-80

1154-58

1111-12

1094-96

1080-88

1060-78

1050-79

+18.0(1220-05
+ 16.01 166-46
+ 17X^1111-00
+ 14.01094-89
+ 14X 1080-78

NOV

January...
Marah

Juty .

+ 7.0(1068

load -Morning: Cash £291 X0, 92X0,
92X0, three months £308X0, 02X0,
02.00, 01X0, 02X0, 02X0. Kerbs: Throe
months £303-00. 03X0. 04.00. 04X0.
Afternoon: Three months £303.00. 03X0.
04X0. Kerbs: Three months £305X0,
07X0. 06X0. 06.00, 04X0. 08X0, 04X0.
Turnover: 10,375 tonnes.

WHEAT

r ests rd*y»! +w
dose | —

July 4
Sept
Mov_
Jan_

Mar J

May-

118.40

108.60

118X0

115X0

119.45

122.75

BARLEY
(YestTd’ysf +or

+0.S6

Ss

104X5

108X5

112.15

1X5L46

118.70

Business done— Wheat July 116.50-
117X5. Sept 108.60-108.55, Nov 112.25-
112.10, Jan 115X0-115.80. March 119,35
only. May 122X5-122.75. Sales: 187
Iota of 10 Otonnes. Barley: Sept 10420-
104.75, Nov 106X5 only. Jan 112.05
only, March 11SX 5on[y. May 118.70-
118.65. Sales: 60 Iota of 100 tonnes.

.LONDON GRAINS— Wheat U.S. Dark
Northern Spring No. 1 14 per cent June
nl.25. July lift Aufl 109X0 tranship-
ment Ease Coast sellafs. EngKab Fead
fob Sept 112.25b CXs 144X5 East . Coast
ssfiere. Maize: French- Isa heir June
136 transhipment East Coast seder. S.
African Whtta/YeHow June^ltAy 85.00
■after. Barley: English Feed fob June
T13X0. Jen-Mmch 148 EBW Coast
setters. Rase ungiioied.

HGCA — Locational ex-term sNot
prices. FWd bariey: S. West 111.10,
N. West 111X0. The UK Monetary
Coefficient for tb* week beginning
Monday June 14 (based on HGCA
calculations using five days’ exchange
rates) i* expected to .change to 0X19.

rubber

The London phitocal ma r ket opened
steadier* erawaad Hide Interest

throughout the day end dosed on an
easier note. Lewie end Peat recorded
■ June fob price for No. 1 RSS in
Kuala Lumpur of 207X (203.0) carts a
kg end SMfl 20 179.5 (177.5).

LUE— Turnover 80' (88) tors of
10,000 oxe. Morning: three months
3S0X. 60.6. Kerb: three months 3503.
51 X. Afternoon: three months 349.00,
48X0, 50X0. 49X0. Kerb: nil.

COCOA

Futures traded quietly at unchanged
levels but commission house, end
jobber short-covering after the New
York opening caused prices to dose
at the highs. Actuals business was
sea roe, reported Gill and Doff us.

Seles: 643 (97) lots of IS tonnes,
1 (nil) tots of 5 tonnea.

Physical dosing p trees (buyers)
were: Spot SI.OOp (51.50p): July 50.75p
(51.00p); Aug 51-SOp (9l.75p).

SOYABEAN MEAL

The market opened S0p higher on
follow-through buying, reports T. G.
Roddick. Prices eased on mixed sell-
ing before firming on commission house
buying.

Yosts rdya'+ or
Close j —

Business

Done

£

per tonne

June.

August. —
October^.
Dec

_ 1

150JM-50.1. + OX5
121.40-21X + 1.00
134X3SU +1.15
157X0-S8.5. + 1.16
1i7XQ-MX. + O.I0

120XO-S8XO

130X628.40

151.6040X0

Fab...

April

—

Sales: 3.773 (Z382) lots of 5 tonnes.
ICO Indicator prices tor June 7
(U.S. cents per pound): Comp, daily
1979 123.17 (122j43): 15-day average
119X8 (119X4).

GRAINS

July wheat opened higher and traded
firmer after its previous faH due to
some profit-taking. Barley and new
crop wheat remained quiet, . Aefl
reports. ‘

Seise: 178 (140) lots of 100 tonnes.

SOYABEAN OIL— The market opened
SS.OO higher in quiet condltione. re-
ports T. G. Roddick. Prices remained
In narrow ranges and closed around
opening levels. Closing prices end
business done (U.S. S per tonne):
June 500X0-15.00. 515.00-00.00; Aug
500.00-01X0, 502.00-01 .00: Oct 503.60-
04-50, 503.50; Dec 507.50-10X0, 509.50:
Feb 513.50-15X0. 513X0-10.60: April
517X0-19.00. 519.50; June 520.00-20X0,
untreded. Turnover: 51 (91) lots of
25 tonnes.

SUGAR

LONDON DAILY PRICE— Raw auger
£103.00 (£101.00) a tonne cil June-July
shipment. White sugar daily price
£131.00 (£130.00).

’ ’ m i ” : "

No. 4 : Yesterday! Previous | Business
Gen- close dose done
tract ! j

* per tonne

Aug -...IUW.25^8.40 IM.lfl 0B.1511ISX5- 07X0

Oct. ! 1 1 1.85-1 l.TOi 1 1 1.10-11 JSjl ia.56-IOXD

Jan iliaj»-20J»ai116J»-i8JIOi —

Marsh i24XO-a4.7B1S4X524JO:i2BXM4XO

May ; 128. 75-26X5 f I26J&-26X0' IS8.75-28.75

Aug 1S8X5-JOX8I128JW-29.00; -

Oct — .i1WJ M5X0iH2J»4WJMl1WX 0

Seles: 2.838 (3.424) tots ot 50
tonnes.

Tate and Lyle delivery price lor
granulated basis white sugar was
£374X0 (earns) a tonne fob for home
trade and £208X0 (£206.00) for export.

International Sugar Agreement (U.S.
cants per pound) fab and stowod
Caribbean porta. Pnees tor Juna 7:

. Dally price 7.06 (6X7): 15-day average
7.63 (7.67).

WOOL FUTURES

LONDON NEW ZEALAND CROS8-
BRH3S— Close (in order: buyer, seller,
business). New Zee kind cants per kg.
Aug 383. 384, 386382: Oct 402. 403.
402-401: Dec 408. 410, 4H4-408: Jan
410. *11. 411-410; March 418. 431. 421-
419; May 429, 431, 431; Aufl 436. 44 O.
441-438: Oct 441, 442. 442-441; Dec
44, 446. 446-46. Safes; 91.

SYDNEY GREASY WOOL— Close (In
order; buyer, setter, busina as V. Austra-
lian cents per kg. July S5.1. 585.5,
*55.9-555,0: Dot 527 X. 528.0, 528.5-
27.0: Dec 532-0. S32X, 533.0-532.0;
March 535.5, 537.6, untreded: May
5395, 540.0, 539-5; July 547.0, 646.0.
547.0: Ok 546.0, 916.0, 546.0: Dac
551.0, 992.0, untradsd. Sales: 75,

COTTON

LIVERPOOL— No spot or shipment safes
were recorded. Traders were cautious
and avoided forward contracts. Too
many uncertainties surrounded the
hostilities in various parts of the world
for Interest to b« widespread, and
dealings remained light, f

POTATOES

LOMTON POTATO FUTURES — The

PRICE CHANGES

In tonnes unless otherwise stated.

i

June 8
1988

[ + or

Month

ago

Metals

Aluminium —
Fro* Mkt — .

£810/615

8916/945;

£810/815

8975/1005

::b75M

1+6-5

59.95

3mtbs__ *779.76 [+6 ^£868X5

Caah Cathoda_l£745 i+6X i £ 858.3

Smtfti *770.75 J+5.5 [£881X5

Gold troy oz.... 8330X75+6 S832X5

Lead Cash '*293.5 | + 6 6317.B26

Smths. *304X5 .+7 *331.576

Nickel *3922 .*3974

Free mkt 23B(2BBc 2U|260e

! ||

Platin’mtr or ’y £260 *860

Freemkt. £169.55 +3.4^169.90

Qulcksllvert _ 8365i57S 1 1336B/M8

Silver troy ox... 359X0p 1+8.60 264.30 p

3 mtha. 350X5^ I + B.B6 376X0p

Tin Cash .-*6662 ;+56 *7080

3 mtha— j£6645 +70 *7817X

Tungaten22Jlbl6111.68 { 18X06X8

Wolfrm22.4t0bs|8nBi11B

Zinc Cash *398.5

3 mths *398X5

Oils I

Coconut (PhiQ 1 8605a
Groundnut ,

Linseed Crudi
Palm Malayan
Seeds I

Copra Ph lip ... 16332. 5u
Soyabean (UXj|«260X
Grains

B&rleyFut. 8apf£104X5

Maize £136.00

Wheat Fut-Sep £108X0
NoXHardWint t

i

6198/110

8418X5

£418X8

iooo/ra

64®

8670

t

*510

L

6330

I+4X 16874X8

!— OX6LE1D4X5

—

£137.50

£183X5

X

+ 15
+ 16
+ 16

Other |

commodities!

Cocoa ahlp’t* £918
Future Sept, £9 17.5
Coffee Ft' Sept £1154.5
Cotton A-Irrdex 75.65c
Gas Oil July—.. 5392.75
Rubber fkilei- Sip
Sugar (Rawl,... £103u
Wooit*ps64a W. 39 7 p kilo]

tUoquoud. uJune-July. wMay-
Juna. yJofy. I Per 761b flask.
•Ghana cocoa, n Nominal. SSeHer.

1-0-5

+2

ffilOOl
£980.5
|£113BX
77.05c
I— 2X I82B6
53p
tons

389pkllo

INDICES

FINANCIAL TIMES
June 7 ) June * ) M*th ago^'arago
250-80 |229/re] 242 .3 6'1 255.48
(Base: July 1. 1952 « 100)

REUTERS

June 8 | June 7 'M’th ago! Var ago
1517.6 jlSQB.8 j 1577.1 1 1762.4
(Base: September 18. 1931 100)

MOODY^S

MTh ngO|Y'ar ago

. 99 IX 1 984.7

1008.6 j 1088.3

(December 31. 1931 “ 100)

DOW JONS

Dow

June

June 1

Month ;

Year

Jones

7

*80

ago

123.74122.07

125X2]

_

Futr 1 *

124X7 1 122X4

128.66

—

(Base: December 31, 1974 ■ 100)

market waa very quiet and slightly
easier, reports Coley and Harper.
Closing prices Nov 65.00, -0.20 (high
35.00. tow 04.90); Feb 73.®. -D.»
(high 73®. low 73.*40): April 83®.
-0® (high 83®. tow 83.10): May
94®. -0.30 (high 84®.- low 93®)-
Turnover 118 (161) lou of 40 tonnes.

HIDES— Birmingham: The market waa
mostly unchanged. Second clears. Ox:
31-35.5 kg 58Xp a kg (5B.5p): 26-30.5
kg. 65. 5p a -kg (63. Op): 22-25.5 kg.
70-2p a kg withdrawn (70-Op).- Light
cows: 25X kg. 6&0p e kg (67.5p).

MEAT/FISH

SMITHFIELD — Pan ce per pound. Baef:
Scottish killed aides 79X to 85^: Ulster
hindquarteig 95X to 98.5, forequarters
62.0 to 55.0. Veal: Dutch hinds and
ends 117.0 to 122.0. Lamb: Engfleh
smell 72.0 to 80.7. medium 70.0 to 74.0,
heavy 66.0 to 70.0: imported: New
Zealand PL $2.0 to 63.5, PM 61 X to
62X, PX 58.0 to SOX, YL 58X re BIX.
Pork: English, under 1® lb 31 X to 64X,

NEW YORK. June S.
PRECIOUS METALS. Copper and Cotton
came under pressure from profit-taking.
Sugar sold off modestly on commission
house selling- Hasting oil was limit
up or sharply higher on the uneetOad
Middle Eastern situation. Main and
Wheat wars slightly lower on a
favourable crop report. reported
Heinold.

•Gold— June 331.0-332.0 (336.4),

July 333X (338.9). Aug 337.0-337.7.
Oct 344X-344.8. Dec 352.0-353X. Feb
3ED.5, April 38B.5, Juno 37B.B. Aug

384.8, Oct 393.1. Dec 401-5. Fab 410.0,
April 418.6.

Potatoes (round whiteay — Nov 78.3-
78 X (78X). Feb 86 6 (87X), March
89.6. April 100.5. Sales: 114.

^Silver— June 606.0 (618.0). July
608.5-610.0 (622.5). Aug 617.1, Sept
623.0-625.0, Dac 647.0, Jan 655X. March

670.9, May 686.3. July 701.7, Sept

717.1, Dbc 740.0. Jan 747.7. March

783.1. Handy and Harman bullion spec
604® (592.®).

CHICAGO. June 8.
Lard— Chicago loose 24® (same).
Live Cattle — June 70.75-70® (70®).
Aug 63.30-63® (63®), Oct 60.80-
61®. Dec 61X5-61®. Feb 61-25-61®.
April 61.10-61,40. June 62.30.

Live Hogs— June 59.ffi-59.80 (60.42).
July 57.40X7® (58.70). Aug 56X0-
58.10. Oct 53® -53. 10. Dec 62X5-53.15.
Feb 51.15-51.®. April 49.00. June
50-95. July 49.75.

ttMalze — July 273-27% (27%). Sept
273 (274). Dec Z77V277V March 291V
291V May 300V July 307V
Pork Bailies— July 77.92 (79.92), Aug
78.07 (78.07). Feb 72.80-72.95. March
73.25-72®. May 73.4S, July 73.15. Aug
72®.

t Soys beans — July 632-8324 (635*,),
Aug 677H (639), Sept 639, Nov 647V
048. Jan 663V663V March 680V May
695V Jiilv 705V

gSoyabean Meal— July 182.3-182.2
(183.4). Aug 183.6-183.7 (164.4). Sept
185 X. Oct 187.0. Dec 191.0-191.3. Jan
193.5, March 197.0-198.0. May 203.0- .

204.0, July 207.0-208.0. |

Soyabean Oil— July 18.34-19.35,

(19X7) Auq 19.84-19.65 (19.®). Sept i
19.94, Oct 20.15. Dec 2D.53-20.52. Jan I
20X3-®.®. March 21.25. May 21 .55-1
21.6ft July 21.70-21®. ]

t Wheat — July 344V34-P, (34%), Septi
3SSV359 (3634). Dec 38ZV3B1V March
397V397V May 4Q3*. [

All cents per pound ex-warehouse 1
unless otherwise stated. * S per troy,
ounoe. 9 Cants per troy ounce.
44 Cants per 56-lb bushel, t Cents
per 60-lb bushel. || S per short ton
12.000 lb). §SCan. per metric ton.'
SS S per 1.000 sq ft. 4 Cents per
dozen, ft S per metric ton.

Monday’s Closing prices

ttCocoa — Jidy 1431 (1435). Sept

1477 (1485), Dbc 1535, Mar 1600, May'
1645. July 1685. Safes: 2-269.

Coffee — "C" Contract: July 140.60-
141® (137.39), Sept 131® (128.52),
Dec 12B.1D.12C.®, Mar 122X0-122X0/
May 121®. Safes: 2.300.

Cotton— No. 3i Juty 64.10-64®
(63®). Oct 67.11-67® (66®). Doc
68.40-68.48, Mar 70.45. May 71.75-
71®. Jufy 72.75-73.05. Oct 73.73-
74®. Sales: 6,800.

Orange Juice— July 113® (113.10),
Sept 115.70 (115®). Nov 118.30-118®,
Jin 120.30-120.50, Mar 122. C5- 122.20,
May 123X0-124®. July 125.40-125®.
Sept 126.90-127.®, Nov 127. 90-1 a®.
Sales: 900.

Chicago lmn> Gold — June 338.1
(320.3). Sept 347.0-346 X (328.9), Dec

358.0. Mar 372.0. Juna 382.3, Sapt
384.7.

EUROPEAN MARKETS

ROTTERDAM. June 8.
Wheat — (U.S. J per tonne): U.S.
Two Dark Hard Winter 13.5 par cent
July 179.®. Aug 1®.®. U.S. No.
Three Amber Duqup June 176. July
178. Aug 181. Sept 184. Oct 187. Nov
191. U.S. No. Two Northern Spring
1* par cent June 178, July 177®.
Aug 177, Sept 177®. Oct 179.®. Nqv
182®, Dec 187. Canadian Waste m
Red Spring June/July 200.

Maize — (U.S. $ per tonne): U.S. No.
Three Yellow (afloat 1®, Juna 1®,
July 1®, Aug 129®. Sept 129, Oct/
Dec 127.75. Jan/March 136.® sellers.

Soyabeans — (U.S. $ per tonne): U.S.
Two Yellow Gulf ports June 254®,
July 256®. Aug 258, Sept 259®,
Oct 255.®. Nov 255®, Dec 261. Jan

266 25. Fab 270.25, March 274 gellere.

Soyameal — (U.S. S per tonne): 44
per cBnt afloat 221 traded: afloat 219,
June 223, July 224. Aug 226. Sept
227. Oct 230, Nov/Mb rch 237 sellers.
Pellets Brazil afloat 228 traded: aHoet
232. June 234. July 234. Nov/March
256 sellera.

PARIS. June 8.

Cocoa — (FFr per 1® kilos): July
970-990. Sept 1038-1040. Dac 1076-1080.
March 1120-1135, May 1150-11®. July
1180-1190. Sept 1220-1230. Sales at
Call: nil.

Sugar — (FFr per tonne): July 1425- -
144ft Aug 1435-1437. Oct 1406-1407. '
Nov 1400-1410. Dec 1410-1415, March
1500-1502. May 1549-1551. j U | y 1580-
15®. Sales at calf: 33.

100-120 lb 40.0 to 53.0. 120-1® lb 37.5
to 50.5.

MEAT COMMISSION — Average fat-
stock prices at representative markets.
GB— Cattle 87.48 d per kg fw (—3.70);
GB — Sheep 145.38p per kg eat dew
(-28.46). GB— Pigs 65.97p par kg lw
(-7.12).

GRIMSBY FISH — Supply good:
■ demand fair. Prices et strip's sfde
(unprocessed)' par scone: Shelf cod
£2.B0-£4®, codlings £2X0- £3.60: large
haddock £4.00- £4.30. medium E3AO-
£4®. smell E2.00-E2.40: large plaice
£6.80, medium £4.80- £5. 30; best small
£3. 60 -£4.20; large skinned dogfish
£6®. medium £3.50: large lemon soles
£7®, medium £8.00; rockfish £1X0*
£2®: sail® C1.7D-f2.70.

COVENT GARDEN— Prices for the
bulk of produce in surfing per
package except where otherwise stated.
Imported Produce: Oranges — Cyprus;
15 kg Valencia Lates 3.20-6.50; Jaffa:
20 kg Valencia Lates 56 6X5. 60 6.25.
75 6X5. 88 6.85. 106 6.®. 123 4®,
144 4®. 1 68 4.50: Moroccan: 16 kg
Valencia Lena 48/113 3X0-6®;

Outspen: Novels 40 5®, 48 5.40. 56
5.95. 72 5®. 88 5.10. 112. 4®, 138
3®, 1® 3®. Lemons— Span ia: Trays
5 kg 40/® 1-40-1.80: Jaffa: 16 kg 90/123
3X0-4.00; Oulspan: 15*» kg 80/180 4X0-
6®. Grapefruit— U.S. : 15-17 kg Florida
Ruby 8.80-9®: Cyprus: Small cartons
17 kg 3X0-5.00; Jeffs: 20. kg 27 4X5.
32 4.45, 38 4®. 40 4.®. 48 6X5, 56
5.30, 64 5.16, 75 4.95, 88 4.00;
S. African: 27 4®. 32 4XQ. 36 4.65.
40 4®. 48 S®. 56 5.05, 64 4.7G. 72
4X0. Ruby same as white. Apples^
French: -Golden Delicious 18 kg 8X0-
11X0; Tasmanian: Golden Oeilctoua
1 1 -00-12®. Jonathan 1 1 .00-11 .50.
Granny Smith 10X0-11 XQ, Sturmer
Pippins 11. 00-11 -50: Australian: King
Cola 12.00-12.50; Now Zealand: Red
Delicious 11.00-12X0, Granny Smith
10,00-11®, Sturmere 11X0-12,00;
S. African: Granny Smith 10X0-11®,
Golden Delicious 12.00-13®. Sterit-
crimson 10.50-12®: U.S.: 1& kg Red
Delirious 9X0-13X0. Pe e rs Aus t ra lian:
Winter Nalls I3.b0-l4.00: Tasmanian:

Pack ham’s Triumph 15®; S. Africa
15 kg Packham's. Triumph 12.00-14J
Winter Nells 11.00-12.50; Chile*
P3Ckham’s Triumph 20 kg 15.(
Peachea^-U.S.: 64's 12.80; Spanig
3.00-5.00: French: 4.00-5® Italia
Large traya 5®-B.OO.

Plums-— Spanish: 11 lb Red Beam
par pound 0.50-0®. Grapes— s. Africa
Barimka 5®. Almarte 7.00: tone
Perteqa 7® Chilean: 5 kg Ttiomp*
B-w* ^Peror BXO, Almeria 71

fe 50 ' Strawbwrios-Spamsh: 8
0X0-0.36: Italian: 8 02 0.30-0.:

Belgian: 0® u.S.: 1.00. Chortles
French: Per pound 0.30-0.50; Turkia
Per pound 0® Italian: 0.30-0.1
Apricots Spa n I ah: 5 kg 3.O0-5X
Nectannes — Spanish; 4.00-6®. Mato

fc 9 yv'touv 6.C
3 ‘ {XM - 00 ' yallow 10 I
5® 5.50; Colombian: Groan 10 kg 6.C
7.00. Waier-melons
Spanish: IB kg 6®: Israeli: 4.20-4.8
Pineapples— ivory Coast: Each 0.40-1 2

Engiiah Produce: Potatoes — Par 55 |
wdnte 4.50-5,00. red 4.80-5.50, Kit
« 5.00-5.50, per pound new 0.1

0.12V Mushrooms — Per pound, op<
0. 30-0.50, closed 0.50-0.60. Lettuce
Per 12. round 0.80-1.50. Webb's IX
2®. Cob 1 .40-2.60. Omons— Per 55
40/80mm 3.00-4.50. Spring Onions— P
bunch 0.12-0.14. Spring Cabbage— P
25 lb 1.00-1 .50. Carrots — Per 26-28 ,
3.80-4®. Beetroots — Par 28 lb. rour
1X0-1.20. tong 1.20. Rhubarb— P,
pound, outdoor 0.08-0.10.' Leeks— Pi
lO lb 1X0-1.80. Cucumbers— Pi
package 3.40-4.20. Greens— Per 30
Kent 0.80-1.50. Tomatoes— Per 12-lb bt
D/E 3-80-4.20. Cauliflowers— Per 1;
Kent 4.00-5®, Lincoln 1.00-3.0
Asparagus— Per pound 0.60-1.50. Cefn
—Per 12/30 3.00-3.50. Broad Beam-
Par pound 0.15-0.18. Marrows— Eacl
0.40. Peas— Per pound 0.50. Apples-
Par pound. Bromley 0.30-0.34. Strae
berries — Par 8 ex 0.3 0-0X0, 4 at 02 1
0®. Raspberries — Per 4-oc peck 0X1
0.70. Gooseberries— Per pound OXi
0®.

4 hr&J!

Bmratiet and Maritrts

INTERNATIONAL COMPANIES and FINANCE

F inancial Times. Wednesday •*«*-* 9 1982

: I i

it together at GM

*■* ^ en its truck activities stems partly he is moving ahead with a joint
ah tv qmclay, moving from a growing body of opinion engineering programme that
nJnnfoZ *. a — to that the current slump in would link Bedford with a new
a ®r trtI< * s on worldwide truck sales is truck engineering centre at

, s ? a * e .- Iterecmtly- accelerating the concentration Gat’s Technical Center in the
S?S«™ 0 ^ dwi<ie T 1 ™* of heavy-duty manufacturer. U.S.

** emer ® u, S as the CM has divested several It will be the most ambitious group.
prSSSSLy a ^w^orate plea, to heavy equipment operations, attempt so far by GM to co- -roe

its most recently the sale of Terex ordinate engineering pro* growth

ahead with a new strategy to
manufacture and sell trucks on
a worldwide scale. Its recently-
formed Wortduade Truck and
bus Group is- emerging as the
nucleus of a Corporate plea to
consoinlate management of its
2**rentiy scattered track manu-
facturing, design and com-
ponents operations now nan by
several U.S.-based divisions and
overseas subsidiaries.

Centralising GKPs truck opera-
tions, which accounted for 18.7
pw cent of its worldwide unit
sales in -1981, is said , by com-
pany executives to bi a step
Howards entrancing the com-
pany’s ability to design major
vehicle components which can
be manufactured with only
minor variations anywhere in
the world.

The so-called “world truck ”
has. been on elusive goal for
vehicle man Ufa cturers, however,
mainly because local market
demands and regtriatiroiis
governing truck weight and
design features prevent genuine
nnffxM iifity. A2S the same the
potential benefits of economy of
scale and savings in develop-
ment costs make it an attractive
concept.

he is moving ahead with a joint overseas. Mr F. James
engineering programme that McDonald, GM’s president em-
would link Bedford with a new phasised the developing markets
truck engineering centre at in the Middle East Africa, Asia-
GM’s Technical Center in the Pacific and Latin America when
U.S. he announced the new truck

its ear thm nvtng-equipmep t sub- grammes in several countries,
si diary, to IBH Holding of West Mr Atwood expects to streng-
Germany, in which GM retains then the connection by direct

As part of its new strategy to manufacture and sell
trades on a worldwide basis, General Motors, the
world’s leading carmaker, is expected to develop a
medium-duty van for the Bedford commercial
vehicles division of Vauxhall Motors of the UK which
could become the basis of a design for other GM
facilities. DANIEL McCOSH in Detroit reports

attempt so fa r by GM to co- TTiese markets had hi gh
ordinate engineering pro* growth rates in tile 1970s and
grammes in several countries, are projected to continue to be
Mr Atwood expects to strong- strong in the 1980s,” Mr Mo-
then the connection by direct Donald said, noting that they
. accounted for 39 per cent of

■ world truck sales in 1979.

f to manufacture and sell wMie cars track strategy
isis, General Motors, the concentrates first on rationaiis-
is expected to develop a ing U.S. and European opera-
te Bedford commercial tions. ultimately it is expected
H Motors of the UK which *> inctade Asian markets as

F a design for other GM w ~r . t™,

inctr npfmif rmnrfc The strongest tie is with Isnzu

WSH m Detroit reports Motors of Japan, in which GM

holds a 345 per cent interest.

„ . . As part of a small-car develop-

datii communication via com- ment programme GM recently

a 17.8 per cent interest. Its data communication via com- mei £ programme GM recently
light and heavy-duty truck puter link-up and satellite- The ^y^ed S200m in Isuzu, which
manufacturing up to now has Center is expected to develop ^ greeted to raise its equity to
been done by its U.S.-based GMC first a mediunniuty van for 40 per cent on conversion of the
Truck and Coach division, part Bedford which would become debentures,
of its Chevrolet passenger car the basis of a de sign to be . ,. , .

division, GM of Canada, and manufactured in other GM Isnzu is currently ranked
several of its overseas subsidi- fa ci liti e s,
aries, the largest of which is Along with

is expected to raise its equity to
40 per cent on conversion of the

aries, the largest of which is Along with the truck manu-
Bedford commercial vehicles factoring and design consoiida-
di vision of Vauxhall Motors of tion, the new truck and bus
the UK. group will oversee GM’s heavy*

Tbe immediate impact of the duty components divisions,
reorganisation is to bring truck Largest is its diesel and heavy

“ Take vans, for example,” reorganisation. is to bring truck
says Mr Donald J. Atwood the manufacturing in the U.S. and

manufactured in other GM Isnzu is currently ranked

seventh among world truck pro-
Aiong with the truck manu- ducers of vefaicte over six tons
factoring and design consolida- gross weight. A GM-Isuzu tie-up
tion, the new truck and bus would make their combined out-
group will oversee GM’s heavy- Pnt the largest in the world,
duty components divisions, ahead of Daimler-Benz. Isuzu,
Largest is its diesel and heavy which formerly built a Light
transmission arm, the Detroit pick-up sold by GM in the U.S.,

GM vice-president in charge of Canada under a single division, Diesel Allison divirion, which M 5 been reported interested in
the track group. “We make co-ordinated with Bedford and ^manufactures engines for GM mtermg the U.S. medium-duty
vans in Europe, South America the Hua Tung Automotive of tracks in addition to supplying market. .But GM^s main interest

and other countries. We could Taiwan, in which GM holds a
be making a series of vans on 45 per cent interest,
the same platform — the Basic Operating responsibility for
chassis. There could be same Bedford and Hua Tong stays at
cross-coupling <■— — 1 — m. •- . ,... 4 4. *- «■-

other truck companies: about 30 at this point appears to be to
per cent are produced for over- 2 am a m anu f acturing base in

seas markets.

The consolidation and

Japan.

GM likewise is building a

components, “arms length,” according to Mr strengthening of GM’s ■ world- heavy-duty diesel plant in Tai- .

new efficiencies in manufac- Atwood, and he intends to re- wide truck operations is aimed wan for Hua Tung, which will

turing”

GM’s interest In reorganising

tain existing badge names in
the U.S. and Europe. However.

at positioning the company to ultimately supply 50 per cent of
take advantage of future growth that company's needs.

Gulf & Western decline I Cautious outlook at Fluor

BY OUR FINANCIAL STAFF

BY OUR HNANCIAL STAFF

A FALL in third quarter earn- recession and the level of in- OPERATING RESULTS mil from $132m to a record $159m
ings reported by Gulf and Wes- terest rates has caused “further probably be upset in the second or $2.83 a share. The total was
tern Industries, the widely deterioration” of most sectors half of this year by the world- held back by costs involved in

tern Industries, the widely
diversified industrial group, was
expected, says the board, and is

of the economy in which
G and W operates. In particular.

wide economic climate, says

acquisition

blamed on the economic reces- the group’s sugar operations—
sion and the continuing high part of the consumer and agri-
interest rates. cultural division which brought

Net earnings dropped from in 40 per cent of last year’s

Fluor, the major engineering Minerals, thee oal lead, zinc and

and construction group.

part of tiie consumer and agri- However, the directors are For the current year, Fluor
cultural division which brought endeavouring to mitigate any expects to benefit from the
in 40 per cent of last year’s adverse effects by continuing to inclusion of a full year from St
earnings, are still being hit by aggressively market the com- Joe and also from higher pro*
the depressed prices on world pany’s services and products. duction at the Buchan North
markets and by the severe frost Fluor has reported net income Sea oilfiel d
in Florida. for the first half of the fiscal Fluor said that its four

silver subsidiary.

For the current year, Fluor

$75.8m to $35.3m or 44 cents a earnings, are still being hit by
share fully diluted in the # t uar>- the depressed prices on world

endeavouring to mitigate any expects to benefit from the
adverse effects by continuing to inclusion of a full year from St

ter ended April 30. although
sales dipped onlv slightly, from
$L47bn to 9154bn. At the nine-
month stage, earnings are down
by 25 per cent to_$l 67.4m or a
fully diluted $2.05 a share.

The earnings totals are, how-
ever, distorted by investment
gains, by changes in accounting
methods and losses on closures
of some operations.

The board comments that the

markets and by the severe frost
in Florida.

However, six out of the seven

duction at the Buchan North
Sea oilfield.

Fluor said that its four

one rating divisions were profit- share, compared with $?4.3m
able during the quarter, the or $1.52 a share a year ago.

1982 year or $82m or $1.04 a operating units continued to
share, compared with $?4.3m trade on a profitable trend.

hoard points out.

There were more shares out-

with higher earnings recorded
at the engineering and con-

For full fiscal 1981. Gulf and standing in the current period struct! on groups and also at the

Western took earmnss from
$255m to a peak $291m on
revenues of $5.7bn. Operations
outside the U.S. make up 44 per
cent of group profits.

than last year.

For the whole of fiscal 1981,
Fluor, which takes about 38 per
cent of its profits from outside
the U.S-. pushed earnings ahead

drilling service division.

The first quarter of this year
showed a substantial rise in
net income, which largely
reflected the inclusion of St. Joe

THE ANNOUNCBdBifr APPEARS AS A MATTER OF RECORD OM.Y

MO OCH DOMSJ0 AKTIEBOLAG

M0D0

U.S. $130, 000,000

MEDIUM-TB3M FACILITY

fNCUJONGA

U.S. $30,000, 000

BANKER’S ACCEPTANCE
REVOLVING CREDIT FACILITY

£30m
Eurobond
issue for
French bank

By Peter Monta g twn,

Euromarkets Correspondent

A £30H five-year issue was
launched by Basque Fran-
chise du Commerce Exterieur
yesterday in the Eurosterling
‘ market, the first bond in (this
seter since March.

The issue, which comes at
a tune of declining UK in-
trest rates and a strong
currency v bears a coupon of
14$ per cent and Issue price
of par. It is led by S. G.
Warburg.

Some bankers said yester-
day that the Eurosterling
market now looks ripe for a
more sustained flow of new
bonds, although, as in other
sectors of the Euromarket,
the danger of excess remains.

Both the Eurodollar and
D-mark markets continue to
suffer from this syndrome.
Dealers in dollar bonds said
yesterday they saw some con-
solidation after Monday’s
sharp price falls, but trading
activity was mainly confined
to professionals whose short-
coverings pushed selected
issues off their lowest levels.

D-mark bond prices fell by
up to i point, with the strong
dollar adding to the mood of
depression. Today the Inter-
American Development Bank
is scheduled to launch a
DM 150m issue, the largest
in this month’s calendar.

Yesterday the ' bank
launched a FI 100m 10} per
cent 10-year issue on the Batch
market through Algemene
Bank Nederland and Amro.

Also launched yesterday
for the Quebec urban com-
munity was a C$15m six-year
16} per cent issue at par
through BNP, Banque j
Bruxelles Lambert and Wood ,
Gundy. The Province of
Saskatchewan " is raising
SwFr 100m through a 10-year
Issue with an indicated yield
of 6J-6J per cent through
Credit Suisse.

Currency-hedge
bonds offer on
Swiss market

By John Wicks m Zurich

A GROUP of Swiss banks
led by Soditic SA, of Geneva,
is next week to offer the first
currency-hedged . bonds to be
issued on the _ public capital
market. The borrower is the
Curacao-based Transam erica
Financial Corporation, which
last year pioneered cnrrency-
bedged notes in the Swiss
private placement sector. .

The issue will consist of a
minimum of $81m worth of
11-year bonds, each with a
nominal value of $5,400. The
bonds. which will, be
guaranteed by San Francisco
parent company of the same
name, will be offered for
subscription between June 15
and 22 at a unit price of
SwFr 5,000, plus SwFr 15
stamn duty.

While an annual 7 per cent
dividend will be paid in Swiss
francs at a rate of SwFr 350 .
a bond, repayment will be of
the face sum of $5,400 on
July 9 1993. Holders have the
right to redemption three
years earlier at $4JL40.

Mr Robert Christie, trea-
surer of the parent company,
said in Zurich yesterday that
the offering might be In-
creased. depending on market
demand and the development
of excha nge ra tes. An abso-
lute maxi mum ■ issue
would be a nominal $108m.
This would mean an increase
in the Swiss-frame subscrip-
tion value from SwFr 75m to
SwFr 100m.

Clore wins the battle for

control of Gulf Resources

BY PAUL SETTS M MEW YORK ^ by &

MR ALAN CLORE, son. of the pany who will continue to serve shareholders e»ti ^ cent in
late Sir Charles Clore, one of as directors. But Mr Robert margin note’s dissident

Britain’s wealthiest men, yester- Allen, the chairman of the com- ravour of

day won his battle for control pany a and director since i960, Mate of. [ urec _ _ decided

of Gnlf Resources and Chemical, will no longer serve . on the Mr Clep said Q
the Houston-based metals and board.

fertiliser company with sales of
$375nr last year.

favour 1

pany a and director since i960, date o£ decided

will . no longer serve . on the Mr Clcre said he had ,
board. - to fight gainst toe

The new board was. under- managenient because it had been

stood to-be meeting in New York. nwgh i e tT realise the
yesterday and was expected to Ajmpany’s assets

announce new executive Qi ore intends to study aiTe 5~* 1 ''
appointments to head • the com- y ve strategies for the company-

^jbf a. brief statement, Gulf Birt HSvf S all litigation
Resources said the settlement does not resol _

SS^JSSHtS&SS agreements

lie mew board was .under- mana g en
stood to-be meeting in New York. t

lated more than 15 per emit of
tiie U.S. company’s shares and
has been waging a proxy fight
to unseat tiie current manage-

ment of Gulf Resources, is Resources said the settlement
among toe new directors of the agreement provides for toe dis-

Houston-based com pany .

Mr Clore, who has accumu- yesterday and was expected to ^ ^

announce . new executive
appointments to head -the com-
pany.

In a. brief statement, Gulf

missal of certain litigation and

The ' company and the dissi- the granting of mutual releases.

dent shareholders grouped in
toe so-called Committee tor New
Management readied a settle-
ment yesterday whereby a new
board of directors including all
12 of Mr Cl ore’s nominees has
been elected.

The new board includes two
present directors of the com-

The statement said:. “The
agreement reflects the com-
mittee's desire to allay fears of
employees and to facilitate an
orderly transition.'’ •

Gulf Resources bad until now
fought vigorously to block Mr
Clore from taking control of toe
cm pany. But Gulf Resources

ance btoefits agreeing
a proved bjke old «anf gemfflt
These lnvtive substantial bene-
fits to mmzgers should J-hey
lose their wfcs, which Mr Clore
and otheri -dissident same"
holders, inpding toe
On Company controlled by toe
Hunt brothers of Dallas, regard
as totally unpstified and extra-
vagant.

Holly Sugar management
obtains facility for buyout

BY OUR FINANCIAL STAFF

HOLLY SUGAR, the Coiorada- will pay $65 a share for toe
based sugar beet processor, company's stock.

announced that it has received
an offer from General Electric
Credit for • a $100m credit
facility in connection with a
leveraged buyout of the com-
pany proposed by Mr Michael
S. Budbsbemh, toe chairman of
Holly. Mr Bochsbaum plans
to make a formal proposal to
Holly’s board in toe '.near
future,, be says.

He added that the GIJ Credit
proposal does not carry the

Holly said the offer contem-
plates a. total loan facility of
$100m comprised of a four-year
revolving loan with a first
security interest in accounts
receiveable and inventory and
a seven-year fixed asset loan..

Borrowings under the revolv-
ing loan wifi vary with eligible
collateral.

Mr Buchsbaum said that GE
Credit - anticipates moving

conditions attached to certain aiK*d rapidly vito toe tra^sac-

previously-announced proposed
financings.

tion. He added that the credit
faefitity is not conditioned on

U.S. St»el in ,
move to sell
titanium unit

By Our New Yfik Staff

U.S. STEEL, be leading
domestic tJi>. stetmaker. and
National Distillers and Chemi-
cal Corporation, re studying
the posable sale o RMI Com-
pany, the secoa largest,
titanium producer 9 the U.S.
Based in Ohio, MI is a
partnership owned quaUy by
its two parent computes.

RMI has a titanlm sponge
capacity of around 18n to, end
a mill products cajac.ty of
roughly 15m ft- Lsty^r its'
profits rose sharply/ to $6.3 in

Holly said toe GE Credit '**. *■*• <* noabeet suga r pro - ^ ^ ^ ox Jjer $J65m.

funding will also be used for ® essil3 £ 5™ n contni>a - But toe • company fas waned

0 ■ Hatm hv «n«r h»3t gnWlAK .. . . L .

the company’s ongoing vorking nons V Y oe*
capital reqinreinents. ' '. Howevm-. Hofiy

Under the buyout offer, Mr continue to pur
Buchsbaum. certain other man- viously-announced
agement officials and others programme. •

tions by sugar beat growers. . 1fcat we akerdema
However, Hbtty said it wiH mercial aircraft
continue to pursue its pro- types of mtiitary
viously-announced divestiture Jbead to lower sales

for 'om-
d certain

FT INTERNATIONAL BOND SERVICE

The list shows the 200 latest international bond issues for which an adequate seco
exists. For further details of these or other bonds see tile complete fipL af Eurobond

will be published next on Wednesday June 16.

U-S. DOLLAR

STRAIGHTS Inn

Aeon Ufa IS 88/07 ... ISO
Amu lnt Fin. UP* 92 7S
Amu O/S Fln; -1*V88 7S
APS Rn. Co. It?* 89 ... 75

ATT W* 89 400

Bakor fnt. Rn. 0.0 92 225
BHP Finance 14\ 88 ... ISO
Bk. Amor. NT SA 12 87 200
Bk. Montreal 14*3 87 ... 100
Bqub- Indo Simz 15 89 TOO
British Cot. Hyd. 14* 89 200
Burroughs lnt. 151, 88 50

Canadalr ISh 87 ISO

Cansditn Pae. 14 3 * 92 ’76
CaroQna Powar 184 B9 -80

C1BC 16 87 «... 100

CrtiCorp O/S 15 84/92 100
Citicorp O/S 15»* 85/97 125

CNA 15* 37 75

Con. Illinois 151, 89 ... 100
Duke Pwr. O/S 15*, 89 GO

Dupont O/S Cap. 0.0 90 90S
ECSC 14V 87 BO

LEAD MANAGED BY

CHASE MANHATTAN CAPITAL MARKETS GROUP SVENSKA HANDBSBANKEN

COMMERZBANK AKTIENGESELLSCHAFT
MANUFACTURERS HANOVER TRUST COMPANY
PKBANKEN
socitHc g£n£rale

MANAGS3HY

qOtabanken

MARINE MIDLAND BANK, NJL
THE ROYAL BANK OF CANADA
SPAR BANKER NAS BANK

MEDIUM-TERM FACILITY

FUNDS PHQVDEOBT

THE CHASE MANHATTAN BANK, N.A. - COMMBEBANK INTERNATIONAL S. A.

CONTINOSITAL ILLINOIS NATIONAL BANK SOOETtANONYME

AND TRUST COMPANY OF CHICAGO THE FIRST NATIONAL BANK OF BOSTON

GOTABANKQM MANUFACTUH9B HANOV5? trust company

MARINE MIDLAND BANK. N A ’ MIDLAND BANK pic

PKBANKBN THE ROYAL BANK OF CANADA GROUP

SOCaETt GENERALS sparbankefbmas bank

SUNDSVALLSSANKBM SVBMSKA HANDaSBANKEN

TORONTO DOMINION BANK WESTLBBSITERNATONALS.A.

UNION BANK OF FINLAND [SINGAPORE] LTD.

AGENT

SVENSKA HANDELSBANKEN

soqetegcnErale

sundsvallsbankbm

TORONTO DOMINION BANK

MIDLAND BANK pic
THE FOYAL BANK O

BANKER'S ACCEPTANCE
REVOLVING CREDrrFAaUTY
funds provided by

THECH^ MANHA TTAN BAN K. NA . CCW4MERZBANKAKTBMGSS-LSQ4AFT

^EMflXANOBAW.NJL

THEROYAL BANK OF CANADA GROUP SCdtlEG^NERALF .

SWBANKHSMASBANK SVHVSKA HANLaSBANKS^

TORONTO DOMINION BANK

THE CHASE MANHATTAN BANK, HJL,

Maria?

Insurance
plan for
Arab loans

By Our Enron ar k t ti

Correspondent

DR MOHAMMAD IHADY,
chairman of the Arab Fond
for Economic and Social De-
velopment, has proposed a
new regional Insurance
fund to guarantee commercial
, hank loans for Arab develop*

! ment projects against default

This would help the poorer
countries of the region obtain
comerefal bank finance at a
time when flows of conces-
sional funds might become
scarcer because of- the fall in
oil prices, be told a London
confer eftae on Arab banking
and finance-

The protection aginst fin-
ancial risk offered by the Pro-
posed fond would Complement
the protection against politi-
cal risk already provided by
toe Inter-Arab Guarantee
Corporation,

Dr Imady’s proposal fol-
lows shortly after Mr Tom
Clausen, president of the
World Bank, .called . for
greater cooperation, between
commercial banks af| d official
development institutions.

Dr Inrady said the regional
insurance fond could obtain
®pa«eial resources from
three main -sources. Commer- 1
dal banks would pay in-
surance premiums: national
and regional development
funds operating in the Arab
urea would contribute seme
of their animal profit; and
there could be a levy of 1 per '
cent committed from cammer-
dal bank loans to regional

borrowers.

EIB 154 89 150

EksporlBn»ns 14J* 89-... SO
G«n. Sue. Credit 0.0 32 400
Gen. Elac. Credit 0.0 93 400
Getty Oil lnt. 14 89 i. 12S
GMAC O/S Rn. 16 88 150
GMAC O/S 15V 85/97 100
GMAC O/S Rjt. 15 89 125
GMAC O/S Rn. .15 87 100
Gulf Canada Ltd 14% 92 100

Gulf Oil 14V 94 T75

Gulf Oil Rn. 0.0 92 ... 300
Gulf Sietaa O/S 10 90 - 60
Int-Am. Dv. Bk. 15% 87 fiS
Japan Dav. Bk. 15% 87 SO
Mew Brunswick 16% 89 75

Ontario Hydro 14% 89... 150
Pac. Gas & El. 15% 89 80
Pac. Gaa 8 El. 15% 89 46
J. C. Penney Gi. 0.0 94 350
Phtfip* Paint 14 89 ... 300
R.J. Rynida. O/S 0.0 92 400
Saskatchewan 16 89 ... 125
Shell Canada '14V 92 ... 125

Spain 15% 87 - -100

Superior O/S Fin. 14 89 125
Swed. Exp, Cr. 15% 89 100
Swed. Exp. Cr. 14% 90 100
Swed. Exp. Cr. 0.0 94 200
Union Carbide 14% 89 ISO
Welle Fargo I. F. 15 87 75

Work! Bank 15V 88 ... 250
World Bank 14V 87 ... 500

Change on

Issued Bid Offer day week. Yield
ISO 100** 301 .-0% -1% 1469
75 101% 10ft .0 -2V7SS2 ,

75' 98V 96V 0 -IV 16.07

75 100% 101% -0V -1% 15X9

400 101% 101% — 0*i -1% 13.89
22B t2B% 26% 0 -1% 14.71
15 0 ’ 97% 98% O -0% W-22
200 91% 91% -0% -1% 14JS7 -

100 97% 97% -0% -1% 15.28 .

TOO 97% 98 -0% -.1 16.54
200 98% 98% -0%' -ZV 19.06

50 lGl% TOZ% — OV -1% 15.19 . ,
ISO 39% 100% -W» -1V«-40 . ,
’75 96% 97 —0% — 2V 16u29

-60 101V102V -0% ~1%15S9'

100 100% 101% — 0% “-TV15.59

100 99V 100% -O ■— 0% 1432 _

125 TOO 100% -0% -1% 75.28
35 99% 100% -0% -1% 1536 '

100 100% 101% — OV -~1% 16.42 ’

60 ' 99% 100 -0%- 2%1&SS ■

90S 36% 36% +0% — 1 14.50

60 98% 99 -0%~0%15A9

IStt '99% 100 -0% -1V16J1 .. :
SO 97 97% 0 -V/lS.IB '

400 27% 27% +0%,— 1 T4J0 ’

400 24% 24% 0 *~8% 14^7r

12S 96% 97V -0V~2 14.73 '

150 101% 107% 0 ~U 36^48.-.

100 98V 98% — OV-IV^W *.

125 98% 97V -0% -2% 15.73

100 97V 97% — OV — 1% 19.75

100 98% 98% -0% r1%15J» ‘

175 97% 98% -0% -1 yU5I

300 26% 27% +0% -1%Y4J4

60 98% 99 -0% -1%16Jt6

55 88% 99V 0 — 1% 1533

50 102V 102% -OV -1% 14^6

75 101% 102% -0% -2V 16.66

150 99% 99% -OV -Z% 14:98

80 102% 103% -0% -0Y14S7 ' .

46 101% 101% -OV -1% 16.06

BO 20% 2T 0 —TV 14.40

tOO 95% 96 — OV — 1% 15h

WO 28% 27 0 -1% US?

125 101% 102% -1% -2% 15.48

125 97V 37% -OV.- 1 IV 144*

WO 99% 99% -OV -0% 1640
125 94% 94% -HIV +0% 1530

100 98% ST, -OV — I KS4

00 95V 95% -0% -0% 15.77

OO 20% 20% -OV -1 14.49
BO 9y. 99V -OV -1% 14J4

75 99V 99% -OV -1%15.lt> .

50 89% 100 O — OV 15.28

00 96 96% —0% —1% 15.37

ChkSdUg prit

OTHER STRAIGHTS tssaJa Bid Offer
Ball Canada 16 89 CS... 100 198 96%

: Can. Pet* S. 16% 89 CSrfiQ WEV .98%
Cid. fonciar 17% 89 CS < 30 39«J

Hudson Bay 17 89 CS... 40 198% 99

Q Hyd. 16% 89 (My) CS 50 198% 99%
Quebec. Pro*.. 16% 89 CS- 80 198% 99

Slmpaotts 16% 89 CS ... 40 .198% 97V

y. Bk. Wwy. 9% 9UEUA 18 99% 90%

Ab» Bank- 10 .87 R ... 160 99 ■ 99%

. Bk. Mees * H. 10 87 FI 75 98% 99%

- ' Euroftoe IfiPj 89 R SO 300% 101

Ireland. 10% 87 H ...... 76 99 99%

. FbHr vUrw*JW*87fl... 100 WOV WH.

; WeHd Bank IQ 87 FI ISO
r^WCB T4‘86 R=r 400

- ISofveywC.14% 86 FFr. 200

Aeons i4 86 £ 20

- 'Baneffeal 14V SO C (D) 20

; »B»P i3V9)-.f is

OECAT3%88C ..... 20

V fin. Ex. Grod. 13V 88 E 15
r Ban. Elac. Co. 12% 89 E 60
1 Hiram Wdlfcar 14% 86-£ 25

Pdvetb^nfcan 14%. 88 £ ' 12
’ /Quebec. 16%.87T....;.„. 36

. Fuad Wd) <liV 16% 89.£ 25

Royei'Trtstco 14-86 £... 12

SDR Fwnce lSV 92 £... 30

$wixl. £x,.Cf.' 13%. 86 £ 20

^uroBcnv -300* -87-'LuxFr 500
EIB 9% ra LuxFr 600

• =LOATH«G RATE.

38 89% 90% -

160 99 - 99% -

75 98% 99% -

SO 100% 101 -

76 99 99% -

wo 700V ton -

ISO . 99% 98% -
400 . 92 S3 -

200 - 91% 92% +
20-96 97

20 89V 90V 1

IS 90% 94% +1
20 «% 96% -M

15- *96% 97%-H
SO .93% 94% +(
25 99% 98% ~(

12 94% 96% +0

36 102% 103% O
25 104% 105% 4Di
12 . 98% 99 1 *' 4-0 1
30 100% 101% +0!

20 98% 99% 0

00 96% 96% -O'

W) 97% SZ% -01

ary market
■ices which'
on June 8-

ange air
y week Yield
R» -OV 18-87
r -AV1B.7Z
IV -4l* iT7^9.

IV — 1% 17*29
t e 16.7*

I • fr. 16.75
1% — 0>t 17SO
% -0% 11 S3

V -0% 10.19
% -0% 10-29

V -0% 70.32
% —0%' 10.70
% -0% 10.10

V -0%10^fr
% -OVH74»

% -0% 17.81

+OV.16J7
+0%>1B.52
is +0% 14.67
*+l 14UIB,
* -4*1%;1*-92
+0% 13.99
+0% 14.70
s+OV'lSJH
+0%!1*.«
+1% 16^4
+0%14JO
+OV 15 J1
+0% 14.19
-0% tl-SO
-1% W-64

™ i . . _ Bpr S rf Otorr C.**tb C-cpn Clytd

lied Irrsh 5V 92 > OV 98% S8 7 , 75/W 15.69 JSSI

lank of Montreal 5% 91 0% 94

tk, of Tokyo 5V $T (01- 0% Be
k, .VavH Scotia 5V- 33 ' OV 98

FC£ 5V 88 OV 98

FCE 5% 87. L . OV 99

eiase Nat Tale.’ 5% 90 OV 99

CCE 5% 2002 0% 9«

o-Ban Eurofin 5% 91...., 0% 99

■adit Aqrlcata SV '97... OV 33
adit Uyonnais 5V97._ OV 99
odit Nat SV 94 10V 98

nreark. Kngdm. of 92. 0%*,' 99
n Norsks Crad. 5% 93 O 3 , 39

rd - Bank Japan SV 88 OV 99

sm. 98», 75/10 15.69 1631
98% 99% 29/10 15V 16.26

2J% WV10/6 *% 13,37

98V 99% 29/10 16% 15.20

991, 99% 28/10 16 15.08

??/7 16V 16.31

^riO 15% 16 A3

ff* S, 11/B 14 -* 2 15-00

S, »% 14/10 IS 16.12
«V 24/9 15.44 15J3
SWp 88% 1/10 16 . 16j06

99 9»V 26/8 15^4 16^7

Si 21* 4/12 15 15 27

2f* 2 /11 1-1 » 1 *-S7

Average price cfaans^s... On day -0% on week —1%

DEUTSCHE MASK
STRAIGHTS

.Asian Dav. Bank SV 92 150

Australia 9%. 91 300

Australia 8% 91 200

Barclay* O/S 'in. 8% 94 100

Canada 8% 89 200

Comp, Tot. E*p. 10% 92 100
Crad. Foncier 8% 92 ... 100

Denmark 10 88 100

Denmark 10% 92 1 00

EOF 9% .82 WO

FFC 9% 9* 200

EfB 8% 92 ; TOO

Int.-Am Dav. Bk. 9 52 150

Ireland 10% 86 100

Nacnl. Financier* 11 90 150

Nat Wear. 9% 32 ioo

0KB 9V 88 150

Philip Morns SV 90 100

Quabec 10% 92 . — 150

R*nle TO 92 100

Tauernautobahn 9V 94 SO

World Bank 9% 89 100

World Bank 8% 92 200

Avsriqa pries charts *a

Qiangs on

laeued Bid Offer day weak Yield

98V 99% -OV -OV 9.38
102% 102% -0% -1%. &9Q
10T%.102% -0% -1% 8.S8
96». -0% -0% 849
100% 100% -0% -OV 8.37
100% 101% -0% -OV 10JJ6
3? 97% -0% -0% 9.18

100% 101 -0% -1 9.83

101% 102% 0 0 9.38-

100% 101% 0 -0% 9.72
102% 103% +0% +0% 9.28
95% 96% -0% -0% 898
98% 39% -0% -0% 9.17
101% 102% -0% -0% 92S6
89 89% -0% -0% 11.13

ia3VRK% -0% -Q% 9J21
101% 102% -0% -0% 9.29
39% 83% 0 . 0 BJ9

103% 103V — OV -1% 934
99% 100% +0>> 0 1DJ0
101% 102*, -0% -1% 9^6
101% 102% . O -0% 9.03
96% 97 -IV “IV SS2
On day -0% on weak -0%

In W-i «b% 99 25/it 14 % irf;

Owk» 6 % 92 OV 99V 99% 9/11 i5%i ■Je’IS
Ulrda ^n^ sv aj . . 30V 99% 89% 29/10 17^ '■

'S-ssss-S IV

S SBB s.I

Sal Pacific 5% 81 ^ ** « «

foimi Saturate 5% 95. ^ 99 % ^

Sr^rd Chert. SV 91 0% »% ^ lint

Sufitwno Fin. S% 88 ... 0% »% S' ’Ki 1 ’M

Mden SV 89 OV IB.rt

Tonnto Dnmin'n B. U m. on ??? 16J1 15jO

1 ■

to Dorein'n 6V 92 0 % gS J”

*«*• .£YSi , i£, k r

Cuv. Cnv.

AilnDtotn 5% 96 P ga?

■ ¥ l| W 8 SB ... 4/8123Tl2
** 96 3/82 470

Coy * Cnv - Pt,«

3/S 23 ^

ns s

2 /ai salS 55^ +P% 8.1

" SWISS FRANC

STRAIGHTS 'Issue

aginst fljH Air Canada 0V 62 ..... 100
y the pro- Alien Dev Bank 7 92... 100
imnl#mAnt Aucalae 7V 92 80

implement Auatrau* e, s* 100

mst polio- Cm. Mat. I’Energis 7 82 100
prided by CFE-Maxico 8V 92 GO.

Guarantee I Co-op- Dwroerk 8% 32 s
uuarantee Cnvn Zolbbeh ^ 32 w

■ . Eureperat 7% 92 TOO

posal fol> First City Rn 8V 92... 25
Mr -Tom ,nd - Fund Finland 8% 82 30

■ of the ***• City 6% 92 IOO

. , ICoownunlm 7% 32. • 35

died . for Manitoba 7 92 too

l between Wtsoi OSK 6 1 , 92 ...... too

ind official NritaMl Mi. Co. 8 32 x
na muciai Upton T. and T. as 92 100

tions. 0KB -7% 92 100

e regional Oat. .Pamper 7% 92 ... ioo
fid obtain PhiHp MorT?8 ^ 82 ioo

Fhlfip Morris 6V 94 ... 100 -

ss from Quebec 7% 92 100 '

Commer- Rdnfa 7 % 92 so

pay in- Sekisui ft*. 5% n ww 70
nStowat Soc. Lux. da Clit. 8% 92 80

VnredtofB Knrtt 6% 92 SO

Chanoa on

Issued Bid Offer day w a sh. Yield
.... 100 WOyiOOV — 0% -0% 6.16
L.. 100 100% 100% -OV -OV 634
.... 80 99 99V *0% +OV 7M

.... TOO 103% 108% r0% r-0% 6 j07
82 100 101% 101% 0 0 8.77

.... GO. . 99 99%. 0 “0% 938

32 S 704% 104% -0», -0% 7171
SZ 100 101% 101% -0% -0% &S2 .
.... 100 101%401% -0% -0% TflD’
l.. 25 103% 103% -0% -OV 7.74-

82 30 98% .«% -0% -0% 038

.— IOO 100% 108% -0% -OV &8B
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100 . 106% 105% +0% +0% 627
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32 30 TO3VTO4 -6%-HJfc*A2

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... 100 103 103% -1 -!% ,£«..
... 100 101% Mft -0% -0% 6J0B

... ioo' ios as% -o%

... 90 99% TOO —0% —0% 7.79

W 70 104% TO^i — <0%. .

92 80 706% 107 O +1 7.00

*2 50 102 TOZV -0%-OV SJffi

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Mami 8 S&., 6Z%

Wnoro 63 +0%

Murata £% f “ 1^-88 +5;

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Nippon gMifc. 691 Zxm J5 2 5 ' «• “K-aB?

S S% 7^* +01 * TI4B

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Sumitomo M«l% 96 loSSf “ & ■* '+1 sia

sw-m bv. con^so;;; ■»%. ss + 1 %

i ii

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nmm nrt

VBB STRAIGHTS . lesrnd 9i4 r Vf*‘ d& x**YUiia " '.
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lnt.-Atnar. Dav. 8%81 .. is WTVIOZV v O . -1% 6J4
Japarv -AUttnea Tt 87... • 9 - 96% 98% *0 - -0%-.»aa-
New Zealand 8% 87 tb TOV WV O +OV **31

Wartd Bank 6%. 82 20 9» . .2 v

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ConpaniMaailMaritets

1 «au AHIIWH

le L ;

l( * Veba pre-

INTERNATIONAL COMPANIES and FINANCE

:; Terry Dodsworth reports on a rarity among France’s new state company bosses

M Stem brings informality to the Cii helm

°!<fer. .

® Mr £ V
sai d t !

~°ent ha* ■-Tfc

l0 ' “esolve

,:^IS

*-aafr

in first quarter

BY KEVIN j>ON£ fti FMSKfUKT.

St|el j),
He Wsel ■

lni «nta,

Jx-'Me.yL

STEEX 1
t:c ■»
is! Eni'i'ulr'b

swanJTJIf

the

in; product, L*
n < -* hlQ - h

?rST -P riun P( j pt

l . i; “' £ WiinJI

:•' ■'•: -r^.j

; , ? 4 ; 'rpm

evsiway

'* «■ •'•• ■'. L

- . ^ f!

“ " r ' : ~ : jfl »

•>: “; s ::, r . ^
V.- ?-.« s,.

•ri VEBA, the energy, chemicals;

trading, and transport group
^ which is West Germany's tor-
tjgest industrial concern, suffered
" "Uf fail of m per' cent in pre-
tax, refits to .DM, 279m ($U7m) .

as a result of the'veak-
" ne^: of its chemicals and oil
operations. After-tax profits
•■7«drdpped by 27.2 per cent while
-.-group turnover rose by 8.7 per
^cent-to DM 12-5bn_
i ?»::s.'Vy>a- said returns f ro m . oil
..■nopecations began to improve in
crMay. whOe profits- -from the
>» power -stations division, includ-
-vt ing Preussenelektra, had been
ji maintained at last year’s leveL
& ; ~ The amount of crude oil pro-
gressed in Veba*s own refineries
jn- declined by 21 per cent to 2.36m
«■ tonnes in the first' quarter,
'while crude oil production, in-
cluding purchases in Libya,
plunged by 59.8 per cent to just
297,000 tonnes.

In line with the weak domes-
tic oil market. Veba’s volume
sties of light oil products
. dropped by 13.7 per cent in the
quarter to 764,000 tonnes. Sales
of middle distillates increased

tonnes, while demand for heavy
oil products such as fuel oil
declined by 322 per cent to
775,000 tonnes.

. Veto's refinery capacity in
the Ruhr has been reduced by
2.5m tonnes a year, but its
crude oil processing plants stiD
operated at only 60 per cent of
capacity In the three months.

The volume of -chemicals:
sales fell by 8-9 per cent in the
quarter.

Electricity generation opera-
tions' performed more success-
fully, increasing power sup-
plies by. 5.8 per cent in the
quarter to 17.1bn kilowatt
hours, with turnover increasing
by 18J9 per cent to DM 2J5bn.

- J _

Demag sees scant chance
of recovery this year

VIRTUALLY all the ' new
bosses of France's expanded ■
State sector were drawn from
blg.industiy or the Government
machine. The exception is M
Jacques Stem, plucked from
his own private company to run
Cii-Honeywell Bull, the shaky,
semi-nationalised computer
group that has known all the
troubles of Job in its tangled
10-year history.

- - Vigorous, greying, with an in-
formal manner rarely found in
top French management, M
Stem was chosen for the Cii
job because . of his record as
an entrepreneur.

Like many .leading indus-
trialists, he started his career
in the administration, working
as an : electronics engineer on
defence systems. But at the age
of 32 he cut adrift and set up
his own company, inspired by
the idea of creating a computer
' systems company that could
offer industrialists a packaged
-solution to- their information
needs.

Backed by FFr 600,000
($100,000) of borrowed money.
.Sesa, the new company, took
-off almost immediately. M Stem
. recalls his first anxious days as
-a -small businessman, when he
found ’ hims elf “all alone in a ■
new office, , with no experience
of running a, business and .no

orders.” But the orders soon
began streaming in. He had bit
the computer systems market in
a lift-off phase, , and Sesa has
expanded- ever since, growing
to international dimensions and
a turnover of FFr 350m.

Officials make no secret of
the fact that this growth record
singled out M Stern as one of
the few men in French high-
technology industry with the
necessary punch to take on Cii.

M Stem says that- his con-
victions go back to his early
career as a public servant work-
ing on France’s aerial defence.
The only readily available
system at the time was Ameri-
can. “I fought to stop the
Government from accepting the
U.S. products,” he says. ** Today
France is the only country in
the Western world which has
an independent capability in
aerial defence.”

Similar independence In com-
puters, he argues, is important
because the technology
penetrates every aspect of
national life — from science and
general industry to education
and communications. " Like
energy and defence, it is an
important element of the
national strategy of any country
that wants to remain
independent.”

The problem with applying

this argument to computers, as
he readily admits, is that the
industry has to -exist in a com-
petitive market. . In the military
sphere, the Government has to
slump up finance, whatever the
cost might be. But can France
afford to support Cii?

For M Stem, the answer splits
down into two elements, tech-
nical and financial. On the tech-
nical side, he argues that Sesa
has shown that French computer
technology can be competitive
in world markets.

There is no reason, in his
view, why Cii should not show a
similar technical competence so
long as it maintains an open
stance in world markets.

Time after time, he comes
back to the point that in the
computer industry, a small
national market is not enough.
On the one hand, computers is
a large-scale industry, requiring
big markets; on the other, a
company needs constant experi-
ence of the best rival technology
to maintain progress: he took
Sesa deliberately into the West
-German market in its first over-
seas move, and then into the
OS.

This international attitude
accounts for the apparent con-
flict between his support for an
independent national industry
and his acceptance of Ch’s link
with Honeywell of the UJS. .

Unlike many Socialist sup-
porters, he was not violently
opposed to the 1976 agreement
giving Honeywell 47 per cent
of the French company.. At the
time, he says, Cii was only
effective in a protected,
national- market Far from
being a sell-out to the Ameri-
cans, Honeywell brought in the
international outlets and per-
spective, particularly in the
UJS.

Where the agreement went
wrong, he believes, was that it
accorded Cii a minority partner
role — Honeywell could veto its
projects — while giving no assur-
ance of long-term cooperation.
Either side could withdraw sud-
denly.

The new agreement with
Honeywell, reducing its stake
from 47 per cent to a little
under 20 per cent, has
attempted to correct this weak-
ness. Although the cost of buy-
ing out the Honeywell shares
has been high — S150n>— Cii can
now act with total indepen-
dence.

On the financial side. M Stern
believes that France has been
trying to get its computer
industry on the cheap over the
last few years. Profits are made,
he argues. by investing
correctly and adequately. But

these investments have not
been made because of the
shortage of funds.

Hence, when the company
lost FFr 449m net last year, it
was paying the price for its
weak capital base: - because
shareholders had not invested
sufficient funds, it was forced
to- run up' heavy, and costly,
debts.

M Stem places part of the
blame far this weakness on. the
previous equity division, in
which the non-Honeywell stake
was variously and bewilderingly
held by an alternating mixture
of the state, CGE and Saint
Gobain. This confusion meant
that shareholders neveT had
sufficient commitment to the
company, he says.

In the new organisation he
will have a direct link with the
controlling shareholder — the
state — which is ready, he
believes, to “ da whar is .neces-
sary to develop the Industry.”
He wants fresh finance in two
ways. First, he says, . the
Government should help with
research and development, just
as U.S. and Japanese companies
are assisted by state develop-
ment contract 9 -.

But the priority must go to
the injection of new capita L
The company's weakness in this

M Jacques Stern

area was demonstrated last
year, when it was faced with
the heavy cost of gearing up
production and following IBM's
price-cutting challenge iu the
medium-size computer market.

Total borowings virtually
doubled to FFr 4.4bn. -com-
pletely overshadowing net
worth of FFr lBbn, and- plunge
mg the company into heavy
interest payments.

M Stern will not reveal
exactly how much he has asked
the Government for. But it is
likely to be in the region of
FFr 2bn to start with, plus a
commitment for regular annual
capital increases afterwards.

SERVCI

— 13 .
" yr.'.i Zi

Crr
1 CV Or

'

3; *
• 5m-.-

BY OUR FINANCIAL STAFF

l ‘'Mannesman demag, whose
-profits were more than halved
-3n 0981, sees little chance of a
■ recovery during the current 12
’'pionths.

>. .-Despite an expected' increase
e in. sales, profits are likely to
rfiStay .unsatisfactory, the com-
pany .said. It returned, net
profits of DM 13m ($5.5m) for
*3981, against DM 29m in; 1984}.

~ Herr Guenter Mueller, manag-
ing -board chairman, said group
'^turnover for this year would
jise to some DM 3Bbn from
/DM -2.94bn in 1981,. but that-
ineommg orders would fall to
^M »-4bn from DM 3.7bn.. .

I'.;- Be ' attributed last year's
Jistuup in profits to high interest
rates and a generally unfavour-
able economic climate.

Incoming orders for -the first,
'-’■ffve' months " of 1982 fell to
DM-- L2bn ; from. DM LSfeh in-
the'Same-1981 period. Orders- in

estate go-ahead
, for.steelrpeflet
^ riakt In Spain

* \ • MADRID The Spanish
: Government has approved the
\ ‘/ r construction of a $140m steel-
- pellet plant iirFregena! de la
-Sierra in the south-west sm
; Province of Badajoz.
r -;- The - Government has
agreed to subsidize the plant
?!with $32m- in addition to
i granting an official credit of
£$30m.

The state-owned steelworks,
c-Ensidesa, has been given. Xu-.
|rrtxuctibns to buy’ 800,000 tons
■£t> i the 1 pellets annually atVa
v-prioe similar to that of its ;
subsidiary. ;

i ^APrDJ

hand at end-April 1982. indud-
ing for the first time some.
DM 500m from die newly
acquired subsidiary Sack of
Duesseldarf, stood at DM 5bn
against DM 4.7bn at end-April
1981. .

Herr Mueller said De-mag's
exports benefited last year from
a weak Deutsche Hark and Ger-
many's relatively low inflation
rate. Export growth will con-
tinue to be closely .dependent
on the trend of the U.S.- dollar.

Foreign sales rose to $2bn in
1981 from $L84bn in 1980.
boosting the foreign share of
turnover to 68 per cent from 65
per cent. Foreign. orders as a
{bare -of total incoming orders
rose last year to 73 per cent
from 68 per cent, reflecting the
strength of •Demag's export
business.

The company is 90 per cent
owned by Matmesmann, the
major German engineer. . :

Weak retail
prices hit
GermanMobil

By Ou r Financial Staff

PROFITS of Mobil Oil Ger-
many felLabout 25 per cent
to DM 225m ($M5,00ft) for
1981 - from DM 294m
The 'company, . in - ite
amraal report, blamed retail
prices, that failed to cover
refining costs so that the com-
pany has been losing one
pfennig a litre. Only part of
the downstream losses could,
be covered by erode oil and
gas production profits, the'
company said.

.'On the bright side, MobU
said its 1981 turnover rose to
DM llbn from DM JLfibn.

Foreign interests control one-third of Hoechst

BY KEVIN DONE IN FRANKFURT

Prof Rolf -Sammet, chief ex-
ecutive of Hoechst. He said

HOECHST, the West German
chemicals group, is still unclear
whether Kuwaiti interests have
secretly assembled a holding of
up to 25 per cent of the group's
equity, worth about DM 1.4bn
($588m).

The latest shareholders survey
carried out at the end of last
year showed, however, that 33
per cent of the group’s equity
was now held abroad compared
with only 19 per cent in 1978,
Professor Rolf Sammet.
Hoechst’s chief executive said
yesterday at the company’s
annual meeting.

Hoechst assumes that a part
of the foreign holdings is in
the hands of big investors from
the Middle East, but bank

-yesterday that the group had secrecy rules have prevented
opened 1982 on. a weak note, closer clarification of -possible

Enso-Gutzeit cuts payout

BY LANCE KEYWORTR JN HH31NKJ

ENSO GUTZEIT, the Finnish
paper, engineering and shipping
group, reports lower profits for
1981 and is cutting its dividend.

On sales up from FM Alton to
FM 4J>bn (5980m), net profits
have slipped to FM 33m, from .
FM 44m in 1980. The dividend
is going down to 6-per cent from
the 8 per cent paid a year ago.

However, Enso is how coming
to the end of its eight-year
investment programme and ex-
pects to see better results in
the current year; In • their
letter to the shareholders, the
company says it. will continue
“ the sale of assets that have
proved unprofitable and un-

necessary from the point of
view of operations.

In Canada, Enso sold 40 per
cent of its subsidiary Eurocan
Pulp and.- in the process
acquired a 6 per cent interest
in Abitibi-Price. "Considerable
financial gains were made ”
from the subsequent sale of
these shares.

• Alko, the state alcohol mono-
poly, increased gross sales by
12.9 per cent to FM 5.05bn in
1981. Profit was FM 521zn
against FM 492m.

Alko notes that consumption
of alcohol increased by 1.7 per
cent in 1981. Prices were raised
on average by 11.8 per cent.

Kuwaiti involvement

Rumours concerning large-
scale Kuwaiti share purchases
in Hoechst have been circulat-
ing for several months among
Frankfurt stock market traders.
Commerzbank is reported to
have played a leading role in
representing Kuwaiti interests.

Under German. corporate law
a shareholder having more than
25 per cent must inform the
company, which in turn must
then officially publish the news.
In addition, German cartel law
demands that intentions -to make
share purchases of 25 per cent
or more must first be registered
with end approved by the
Federal Cartel Office.

Prof Sammet said yesterday
that no such moves -had yet been
made. It is dear, however, that

even if total Kuwaiti holdings
amount to as much as 25 per
cent they could be held nomin-
ally by different parties.

Direct requests for informa-
tion to Commerzbank had
failed to throw light on Kuwaiti
moves, said Prof SammeL In
addition, no information had
been forthcoming from Kuwait
itself.

Since the mid-1970s Kuwait
has spearheaded the Middle
Eastern thrust into German
industry. It already has signifi-
cant published minority hold-
ings in Metallgesellscbaft Korf
Stahl, Daimler-Benz and Volks-
wagen do Brasil. None of the
holdings exceed 20 per cent

Unlike some other major
German industrial groups, such
as BASF, Hoechst has never

introduced restrictions on its
voting rights; .The decisive
question was whether “ a
friendly consensus” existed be-
tween a major shareholder and
the board, said the Hoechst

chairman. '

Hoechst has made a weak
start to the current financial
year with parent company turn-
over rising by only 5.2 per cent
in the : first five months to
DM 5.3bn. Pre-tax profits after
three months were 42 per cent
lower at DM 203m.

Growth is still relying heavily
on exports where volume rose
by 4 per cent in the -five months.
The volume of domestic sales
dropped by 4 per cent from
January to May.

Hoechst’s profitability is
being burdened by weak trad-

ing in plastics and -commodity
petrochemicals. In addition,
the U.S. has slipped back into
losses in the first four months,
following a profit of $2 4. 4m in
1981 and a loss of 510m in 1980.

Hoechst still hoped to main-
tain its dividend at DM 7 a
share in 1982, however :

What the company needed
was an economic upswing in
the second half of the year, he
said, but added there are few
signs- of such an eventuality des-
pite declining German inflation.

Prof Sammet said that 1982
began very weakly and the
domestic economy has not yet
recovered. The weakness of the
D-mark bad helped Hoechst’s
export business but the profit-
ability of these exports is not
always "sufficient."

Cumulative Preferred Stock, Floating Rate Series A

($50 slated value)

All of these Securities have been offered outside the United Slates.

This announcement appears as a matter of record only.

New Issue/ June 2, 1982

U.S. $50,000,000

Newmont Overseas Finance N.V.

15%% Five-Year Extendible Notes due June 1, 1992

Unconditionally Guaranteed as to Payment of
Principal and interest by

Newmont Mining Corporation

Salomon Brothers International

Banque de Paris et des Pays-Bas Hambros Bank Limited

Kidder, Peabody International Limited Merrill Lynch International & Co.

Orion Royal Bank Limited J. Henry Schroder Wagg & Co. Limited

Societe Generate de Banque S JV. „ Swiss Bank Corporation intemationar Limited

. Union Bank of Switzerland (Securities} Limited : -

. Salomon Brothers Inc

Merrill Lynch White Weld Capital Markets Group

MaoxBI Iwacta, Fine*, Fmnar A SMUb loaxpotaiad

Bear, Steams & Co. •

Morgan Stanley & Co. The First Boston Corporation

I nco rporated

Goldman, Sachs & Co. Shearson/American Express Iric.

Bache Halsey Stuart Shields Blyth Eastman Paine Webber “ Dillon, Read & Co- Inc.

incorporated •Incorporated I

Donaldson, Lufkin & Jenrette Drexei Burnham Lambert E F. Hutton & Company Inc.

Sacnrittes Corporation Incorporated T

Keefe, Bruyeffe & .Woods, Inc. Kidder, Peabody * Co. L F. Rothschild, Unferberg, Tow bin
M. Ai Schapiro & Co., Inc. Smith Barney, Harris llpham & Co. Warburg Paribas Becker
Weitheim &Co, Inc. Dean Witter Reynolds Inc.

Atlantic Capital

Corporation

Weitheim &Ca, Inc. Dean Witter Reynolds Inc.

A5D Securities Corporation Atlantic Capital Basle Securities Corporation

Daiwa Securities America Inc. EuroPartners Securities Corporation

Robert Fleming Kleinwo rt, Benson , The micto Securifies Co.

N^uraSecurib'es International, inc. Yamaichi International (America), Inc.

ttfs announcement appears as a matter of record only.

£10,000,000

Revolving Sterling Acceptance Credit
with Multicurrency Advance Option

Guaranteed by ,

THE KINGDOM OF DENMARK

Arranged and provided by

Samuel Montagu & Co. Limited

- April. 7982-

2S

Financial Times Wednesday June 9 .1982-:

Lloyds Bank

Interest Rates

Lloyds Bank Pic has reduced its Base Rate
from 13% to 125% p^u with, effect from the dose of business
on Tuesday, 8th June 1982.

Other rates of interest are reduced as follows:
7-day-notice Deposit Accounts and
Savings Bank Accounts - from 10.25% to 95% pa.
Special Savings Plan - from 12.25% to 115% p.a.

The change in Base Rate and Deposit Account
interest will also be applied from the same date
by the United Kingdom branches of

Lloyds Bank International Limited
The National Bank ofNew Zealand Limited

Uovd* Rank Pie, 71 Lonfcasd Saws, London ECJP 3B5.

Short Term Fixed Rate
Investments With
Interim Amortization

OPPORTUNITY FOR INVESTMENTS IN
UJC GUARANTEED FIXED RATE
VARIED SOVEREIGN RISK, US DOLLAR
AND DEUTSCHE MARK MANAGED
PORTFOLIOS

U.S. DOLLARS

Investment from 1st July 1982 to final redemption
7th August 1983

Interim maturities to produce weighted average life
of 7.4 months

Investment Amount Redemption Value Yield

$6,084,183.00 $6,690,220.00 16%

DEUTSCHE MARKS

Investment from 1st July 1982 to final redemption
2nd July 1984

Interim maturities to produce weighted average life
of 1 year.

Investment Amount Redemption Value Yield
DM8,711,203.00 DM9,452,448.33 10Vie%

FOR FURTHER DETAILS - PRINCIPALS ONLY.
WRITE TO BOX T5703, FINANCIAL TIMES,
10 CANNON STREET, LONDON, EC4P 4BY.

PAN-HOLDING
Societe Anonyme
Luxembourg

The Annual Goner a I Meeting o»
shareholders took place on June 1.
1982. The accounts lor the year
1981 were approved.

The Unconsolidated Accounts show
a net -profit of U.M12.B 14.37 1.90.
After the transfer to the provision
for eootlnoeticlM of the net amount
of various realised gains. I.e.,
U5.S9 7 OS, OX 5.5 6. there remains a
net Income of U .5-S3.209.326. 34.

The shareholders' meet! no (tedded
the distribution to the shares out-
standing on June 30. 1962 after the
cKtfe of the markets of a dividend
of U.SJM.OO for the year 1981. an
Increase of 331 16 over the dividend
Of U.&S3.0O paid lor 1960 (without
taking Into account the extraordinary
dividend of U-S-S1.K paid in July
1901 for the SOtti anniversary of the
company!.

This dividend of U.S.S4.00. which
Is free of withholding tax in Luxem-
bourg, will be payable as of July 1.
1982.

The Chairman recalled that within
a relatively unfavourable economic
environment the net unconsolidated
asset value per share as of December
31. 1981 was U.SJ1B3.S8, Showing
a decrease of 11 . 2 K compared to
December 31. 1980.

Following hs tradition of diversi-
fication. geographical, monetary and
by sectors. Pan-Holding has reinforced
Its stake in the Pacific Basin {77%
of assets as of the end of 1981).
while, globally, diminishing Ns invest-
ments In Europe and keeping anorntl-
mateiy Its investments In the United
States of America.

The shareholders' meeting ratified
the co-optathm to the Board of
Directors of Mr. Frederick A. Kllngen-
steln. Chairman and Chief Executive
Officer of Wertfrefm and Co.. Now
York, and of .Mr. J. Richardson
□llworth. Chairman of the Rockefeller
Center Inc.. New York.

The shareholders' meeting re-elected
Mr. Rowland H. George. Drs Elimcrt
K. Den Bakker. Messrs. Frederick A.
Kllngemteln. Roger PalueMdamtont
and Sir Ronald L. Prafn.

An Extraordinary General Meeting
took place following tho ordinary
meeting and approved the modification
of several articles. None of the
changes affect any basic point of the
articles. For the mast part they tend
to either take Into account Imminent
legislative changes or modify on
detaHs one or the other provisions
to Improve the functioning ef the
company or better define certain
rights Of shareholders.

As ol May 31. 1982 the Consoli-
dated Net Asset Value per share was
U.S. SI 65.1 1 versus U.S4H87JS9 as of
December 31. 1981.

At the same date, the Unconsoli-
dated Nor Asset Value per share was
U.SJ 162.05. a decline of 11.9% trom
December 31. 1981.

Coapanfes
and Markets

INTERNATIONAL COMPANIES and FINANCE ,

Kuwait

increases
stake in
IEDC

By Richard Johns

KUWAIT has increased its
shareholding in the Interna-
tional Energy Development
Corporation (IEDC) and also
the financing of the exploration
activities of the concern estab-
lished in 1979 to develop hydro-
carbon resources in the Third
World.

It is committing another
SSOm to the funding explora-
tion work being carried out in
Angola. Congo, Oman, Sudan,
Tanzania, Turkey, and another,
as yet unidentified, country.

^Overall, the Gulf oil-produc-
ing state’s participation in the
activities of IEDC. covering a
search for oil and gas over an
area of 109m acres of which its
own interest is the equivalent
of 12m acres, now amounts to
50 per cent.

At the same time the stake
held by the Kuwait Petroleum
Corporation in IE AD E.V., the
Netherlands - based operating
arm of the group, has been
raised to 22.96 per cent from 10
per cent of its undisclosed
capital.

KPC, Kuwait’s oil conglomer-
ate. has absorbed the holdings
of AZL Resources of Phoenix,
Arizona, and SuJpetro of Cal-
gary, Canada. The shares of
the Arab Petroleum Investments
Corporation, 10 per cent, Volvo
Energi AB, 6.48 per cent, and
Societe General e pour lTSnergie
et les Resources, 0.48 per cent,
are unchanged.

In addition the Kuwait
Foreign Petroleum Exploration
Company has a 2125 per cent
stake in the parent company.
International Development Cor-
poration SA.. which in turn
owns 60 per cent of the operat-
ing arm.

Intensified Kuwaiti involve-
ment is in line with the state’s
policy of investing in energy
development and hydrocarbon-
based business abroad.

Citibank plans
data service
in Tokyo

By Our Financial Staff

CITIBANK of the U-S. plans
to start an electronic data ser-
vice in Tokyo through the com-
munication circuit of Kokusai
Denshin Denwa offering instant
access to a variety of economic
data.

For instance, the service
would cover the changing rates
of 31 currencies and gold and
financial markets in major
money centres. Citibank sees as
possible major clients Japanese
corporations operating overseas
and regional banks in need of
information useful to their
foreign exchange operations.

This announcement appears as a matter of record only.

Rudutas — Erika

A Joint Venture Between

Kuduta§ in§aat ve Ticaret Sanayi Limited §irketi
and Enka In§aat ve Sanayi A. §. of Istanbul, Turkey

U.S. $76,625,285

Advance Payment Guarantee Facility

(in relation to the Al-Medinah Al-Munawwarah Public Housing Programme,
Saudi Arabia)

Lead Managed by:

American Express Bank

International Group

Managed by:
Rivad Bank

Saudi American Bank

Saudi International Bank

Al-Bank Al-Saudi ALAlami limited

The Saudi Investment Banking Corporation
Riyadh.

Co-Managed by:
Tiirkiye I§ Bankasi A. §.

Canadian American Bank S. A.

BankofBaroda

Offshore Banking Unit, Bahrain

State Bank of India

The Arab Investment Company S. A. A-

Riyadh

International Bank for Industry and Commerce/United Giilf Bank E. C. •
<U]uslararasf Endiistri ve Ticaret Bankasi A.§.)

Participant:

Oriental Credit Limited

Agent:

American Express International Banking Corporation

Saga Petroleum in moves
to borrow some $ 500 m

BY FAY G JESTER IN OSLO

SAGA PETROLEUM, the Nor-
wegian oil company, is planning
to borrow between $500m and
9600m and has Invited two
groups of Norwegian and
foreign banks to bid for the job
of floating the loan.

Saga, becked by about 300
Norwegian shipping finance,
and industrial firms, is one of
three companies chosen by the
Government to play a leading
role in exploration and develop-
ment on Norway’sshelf.

It faces enormous investment
expenditure in connection with
its stakes in 16 licence areas on

the shelf and its 2 per cent
share In the Stat-gas gathering
project, but its only sfgnficant
source of income at presnt is its
1.6 per cent share in the Anglo-
Norwegian Statfjord Field.

The two bank groups which
have agreed to offer terms to
Saga are Norway’s Christiania
Bank, together with Guaranty
Trust of New York, and a con-
sortium comprising Den Norske
Credi thank, the Union Bank of
Norway, Bergen Bank and Citi-
corp. A Christiania executive,
Mr Gunnar Frognes, said that
both Norwegian and foreign

financial institutions were show-,
ing keen interest in. participat-
ing in the loan.

Saga says that the. two groups
are expected to table their offers
shortly and it will make its
choice; by the end of July at the
latest, so that the money can
be raised before the end of this
year: Part of it will be used to
refinance two existing loans—:
one of 9150m dating from 1979,'
raised by Saga itself, and
another, of 975m, raised by the
company's loss-making, petro-
chemicals 'offshoot, ..Saga
PetrokjexnL

Australian life office merger

BY OUR FINANCIAL STAFF

NATIONAL MUTUAL Life
Association of Australasia and
T & G Mutual life Society,
Australia's second and third
ranking life insurance groups,
announced definite plans to
merge yesterday after several
weeks of detailed discussions.
The merger will result in a new
society with assets of A$4.8bn
(US$5bn), still smaller than
the Australian Mutual Provident
Society, whose assets are
currently estimated at A$6.9bn.

However, the merger — by far
the largest to date in the
industry — will both reinforce
the two companies’ already
powerful roles as investors, and
at the same time strengthen
them in the increasingly widely-
drawn battle among Australian
financial institutions to attract
savings deposits.

National Mutual last week

broke new ground for any major
Australian institution by hod-
ding for two minority partners
in the Cooper Basin oil and
natural gas project. Reef OH
and Basin Oil, after acquiring
controlling stakes from Mr Alan
Bond’s Bond Corporation Hold-
ings. it also acquired a 13 JS per
cent stake in Santos, the lead-
ing company in the Cooper
Basin project, from Bond.

Australian institutions, winch
often feel hemmed in by their
financial size in relation to the
stock market, have in recent-
years begun to diversify more
widely into property, agriculture
and direct participations in
major natural resources
projects. National Mutuals
acquisitions in the Cooper 1
Basin, the counfcry’s most pro-
mising large onshore hydro-
carbons development, fits into

this pattern.

There, has afro been keen
speculation that both AMP and
National Mutual . might seek
banking licences if, as the finan-
cial co mmuni ty continues to
hope, the Australian govern-
ment implements recommend-
ations of. - .: the Campbell
committee that would broaden,
competition for lending and
deposit-taking/husiness.

• Castlemaine To obeys, the
Australian east coast .brewer,
plans to make a one-for-eight
scrip issue to increase its capi-
tal from A99L69m to
A$103.15m (US$108m). -

In March the company re-
ported a 61 per cent rise in
interim 1981-82 profits to
A$28.44m from A$17.85m. An
interim dividend of 13 cents
was paid against the full 1980-
-1981 payment of 22 -cents.

for control
of Norman

Ross

By Michael Thompson-Nbef
jo Sydney

A SHAKE-UP of tile Austra-
lian -retailing scene seems’
likely t° follow .from a two-
way ■ struggle for control o£_ 7 .
’ Norman Ross .Discounts, ' -
which runi a chain of40
, discount stores, in New South i
Wales -and Queensland. ; •

Last week, Grace Brothers;
one of Australia's ^biggest' 1 ,
retailers, announced- , :
A$16.6m (US$17.4m) bidfor
Norman Ross, after disclosing
that it held virtuaUy 20 per .
cent of the shares. 'L ,: ‘ : •

But a rival: stake, also of
20 per cent, has -been estab-
lished by Waltons Bond, the
property and retailing ana of -
the Bond ^ Corporation , yihe
main investment vehicle of
Sir Alan Bond, the Perth
businessman.

Last week. Bond ^pera-
tioa raised almost ' AgiSflmL -
witb the sale dt- its; Cooper/- _
Basin oil and gas assets, 'cam-
prising its stakes In Santos '
and in Reef Oil and ' Bashi
oil ■■

Norman Boss is 40 percent -
controlled by its founders, - -
Mr Gerry Harvey and Mr ian~
Norman. The company, went - ■
public in 1972. ;

The Grace. Bro&ers’^W 1
values Norman Rbs^ at A95
a share. Mr Harvey ssii last:
night: “If you revatoe certify- ' .
properties, and take in the'. .•
latest profits, due in three - .
weeks, you get an assetbaefc-
ing for the shares dose to
A97-A97.50 l” The 1980-81 I
profit was A$2.8Sm.' 1

&

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&

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5 *

&

.: vr.

Bancom International in reverse takeover

BY ROBHIT COTTRELL IN HONG KONG

BANCOM INTERNATIONAL, a
private Hong Kong deposit-
taking company with other
financial Interests, is going pub-
lic via a reverse take-over of
Alexandra Knitters, a locally-
quoted former textile com-
pany.

Alexandra holds . cash and
property interests which it says
have a total worth of HK$ 25.3m
(US$ 4.3m). It will acquire Ban-
come through the issue of 55m
new shares to Bancom’s seven
shareholders, leaving the Ban-
com investors with 77.2 per cent
of the enlarged group.

Bancom’s net assets stand at
HK9 125.4m so the net effect of
the take-over will be to increase
Alexandra’s net assets by 36 per
cent to HK8 2.12 per share,
the company says. Alexandra
also forecasts a dividend for the

current year at least equal to
last year's 13 cents.

Bancom is mainly involved in
deposit-taking, trade finance and
money market activities. It also
owns 45 per cent of Bancom
Finance, a brokerage company.

The Hong Kong Securities
Commissaon has waived any
obligation for the Bancom group
to bid for the outstanding
shares in Alexandra, as would
normally be required of an
investor acquiring more than 35
per cent of a company. The
deal remains conditional on.
approval from Alexandra's
■shareholders, and agreement
from local stock exchanges to
quote the new shares.

• PANIN HOLDINGS, a finan-
cial holding company, plans a
HK$65m (U.S.$11.2m) flotation
on the Hong Kong stock mar-

ket Its principal interests are
in finance-related activities in
Hong Kong, commercial bank-
ing in Macao, and non-life in-
surance.

Panin was incorporated in
December 1980 as the holding
company for interests controlled
by Mr George Lee, who is also
vice-chairman of the Overseas
Trust Bank and Hongkong In-
dustrial and Commercial Bank.
Mr Lee's Liberian-registered
company Samba currently owns
63.75 per cent of Panin. A fur-
ther 29.16 per cent is controlled
by Middle Eastern Investors in-
cluding the Arinfi group. Arinfi
is a Bermu d a : re gi stered Arab-
owned investment banking and
venture capital company.

Panin's net tangible assets are
said to be HK$334.3m. while
after-tax profits for 1981 totalled

HKS17.5m. A .

The company’s present issued. ,
share capital comprises 189m ,
shares of HK$L The flotation '
issue will com prise 54m -mew
shares at HKJ1.20 each, under-, j
written by Schroders and Ghar- 1
tered. the merchant bank. Net !
tangible assets are stated .-at •

. HK9L3B a share bn the . capital .
as enlarged by the issue. J The
flotation will reduce Samba’s (
holding to 49J58 per. bent'

Ba nip forecasts profits^ of : at I
least HK$31m for the . current
year and a . final diviiien^' of
seven cbnts. J . '. ‘

The ' company plans, to ip-
crease ify activities in the Asia-
Pacific region and in the Middle : r
East, broadening the scope of 1
business into commodities and-,
securities ■* trading as* well as
property investment. •

e

jasa

f'

s*

.1*

&

AS®

pjif

IS

f*

^Di

fi

U.S. $10,000,000

IBJ

The Indus trial Bank of Japan, limited
London

Floating Rate London-Doilar Negotiable
CertificatesofDepositdue 9th December/) 982

In accordance with the provisions of the Certificates, notice
is hereby given that for the six month Interest Period from
9th June, 1982 to 9th December, 1982. the Certificates will
carry an Interest Rate of I5| 0 ^ per annum. The relevant-
Interest Payment Datewili be9th December, 1982.

Credit Suisse First Boston Limited
Agent Bank

BANCO DE LA PROVINCIA
DE BUENOS AIRES

U.S. $30,000,000 Floating Rate
Notes Due 1986

For the six -months

7th June, 1982 to 7th December, 1982
the Notes will carry an
interest rate of 15Kt«96 per annum.

Bankers Trust Company, London
Fiscal Agent

BANK OF INDIA, LONDON

US$20,000,000

NEGOTIABLE FLOATING RATE U.S. DOLLAR
CERTIFICATES OF DEPOSIT DUE
9 DECEMBER 1982 EXTENDABLE TO 1983

In accordance with the provisions of the Certificates,
notice is hereby given that for the interest period
from 9 June 1982 to 9 December 1982 the Certificates
will carry a rate of interest of 154 P e r cent per
annum. The relevant interest payment date will be
9 December 1982'.

Agent Bank:

CREDIT LYONNAIS
Singapore

The Bank of Tokyo, Ltd.

4

Sutherland House,

3 Chater Road, Central
Hong Kong.

• 4--.-
. . *- 4 - •

•-•r.-t*;

NEGOTIABLE FLOATING RATE U;'S. -
DOLLAR CERTIFICATES OF DEPOSIT- -V"'
SERIES 104 DUE 10TH JUNE, 1985.

Wb hereby certiiy that the rate of interest payable
on the above mentioDed Certificates of Deposi^for/ iA
the interest period beginning on 9th June, I982 indr : ;;-r
ending on 9th December, 1982 is 15^6% per aammL .

Agent Bank:

Morgan Guaranty Trust Comp^ay^

is.-

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for a
snsap

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■ Hong Kong

- •

'-A

THE DREYFUS INTERCONTINENTAL
INVESTMENT FUND N.V. ^

DECLARATION OF DIVIDEND

..J- ;<

At the Annual General Meeting of The OreyFus Intercontinestttai
myestment Fund N.V., held in Curasao on May 3, 1982 fl»e :
Shareholders of me Fund, acting upon the recommendatioirbf
the Fund s Board of Directors, declared a dividend of S0.-T0
(U.S.J per share to Shareholders' of record on May 21 -1982 ‘
This dividend is payable on }ane IS, 1982 lo holders of beamr
shares upon surrender of Dividend Coupon No. 12 kitached
to the share certificate, to *ie ot the offices of thfe' paying
bankslisted below; This distqbiition is being made from net
investment income. -

Morgan Grenfell & Co. Limited .Deutsche Bank AG
23 Great VVinchester Street - - “Grasse Gallusstr. 10-14

London EC2P 2AX
England

Banque Internationale 3
Luxembourg
2, Boulevard Royal
Luxembourg-Ville
Luxembourg 2205

8 Frankfurt/Main 1
West Germany

Roy Weal Trust Corporation
(Bahamas) Limited
Mutual Funds Department
P.O. Box N7788
Nassau. Bahama Islands

Dividends payable on shares-held In a Dreyfus Intercontinental
Voluntary Account will either be paid directly to the Account
holder or automatically reinvested,, depending upon the
election made by the Account holder when his Account was
established.

Reports are available at the offices of ;the above-mentioned
paying banks or at

. Dreyfus GmbH,

Maxim! ilanstr, 24,8 Munich 22, West Germany.

$5

co c

;

: °ntro|

;s

? T >W..

Financial Times Wednesday June9 1982 . v

INTL: COMPANIES & FINANCE

This aruumiceme at a ppea rs asa matterofTecoi^onfy.

aims

in a

#ar finer imam

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ailih*

tollov^ae ?

' SS ' D e [ « S' H

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«« a'-jC'

BY DAI HAYWARD RIWEUJNGTON

A ^i£,S

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■'••rar.; 'j p :HE; .

■ ■ coepnie

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fc

. “ * *■ . r»r' ifr?

■:ini .OTIY' ZEALAND, the
^paSonsa flag mrricr, which lost
mi; -.estimated NZ$90m (TJ.S.$
70m) in the "year to Man* 31,
/has laid plans to return, to pxo-
. fitablliiy -«ri thin . two years, and
•' .to : bring a record profit of
... NZ$50m by 198&$6.

;-■ -The recovery-prograimne--aii-
nounced by Mr Norman Geary,
the Teceatlyeppointed chief
v executive— involves heavy cost-
■ cutting, including sweeping job
•- reductions, starting ' ■with the
'■ major cut of "1,000 to 7,058 by

- Man* 31 next year..

’Trimming toe company's
■ NZ$200m annual 'wage hall is a
major pant of the recovery pro-
. -gramme. Various options in-

- dude pay cuts, pay pauses for

- management and staff, loosen*
.. ing of restrictive practices and

reductions in allowances. The
-plans cover staff reductions to
6£28. early in toe 1983-84
. finanefaij yeacj and farther
.'decreases over the foflovwmg

- three years to 6,600; or so.

" Air New Zealand aims, on the
" basis of a sfimmed . down
organisation, to push . for new
* ; business. Aggressive rarkwMng
r ■ programmes - are to be "intro*
^ duced.

-- A new, direct service from

- Auckland to London is to start
- -on August 25. 1 At present,

■' ; plans are to land, at Gatwick,

but- -if the New Zealand

- Government is successful in’
negotiating tending nighta at"
Heathrow, Air New. Zealand
regards itself as winning a
bonus. The airline is also to-
ex'pafld its services in Asia.

Sales promotions are to be
geared to attracting more young
people to travel at an early age,
as well as increasing the
, numbers of tourists and visitors
bc.-te New. Zealand. ■

S": 1 '.- • Thfe ; plans .. now being laid
-—'aowhby-Air New Zealand arise
v " : ' front an internal review of the
" ' way the airline should be nm>
“’ : : rbatj also are revealed shortly
■ ‘ • after; the -presentation - of a
!’ report. bn the working of the
"V-ehttpe by Golkar and Asso*
dates, the XUS. 'consultants.

’ commissioned by the New
Zealand Treasury^— the Govern-
:1 : ment . owns • the’ aizfihe^and
;-'’resuft-~ in "essence - from the .
*' plunge in : recent ^fears in the'
airline’s fortunes. -
l :;. ;■ Four yeata ago, Air New
/-..Zealand was one of the. worlds
' " "few international antines mak-
, "ing a profit. Its position changed

after a series of economic blows.
These included the worldwide
grounding' .of the McDonnell
Douglas. DClOs- by the U.S.
Federal. . Aviation Administra-
tion for safety reasons three
years ago, problems connected
with the merger of New
Zealand’s internal and overseas
air operations, and then, trait
mati rally, the air distater on
Mount Erebus, the Antarctic

. K5--TV '

%-■ ***;;; ■'
•s- t >' ■ ■

fr&m

■ , %-vv

volcano, on an Air New Zealand
jp ghtw^ing fli ght in. November
1979, on whtdx Z57 lives were
lost. .

The consuftants suggested in
April— In a report that was
angrily received by Air New
Zealand in respect of its scope
and the timing of its release —
that Air New Zealand should
streamline - its operations,- im-
prove Its efficiency and cut its
staff by some quarter, hi the
strongly worded report, not
formally implemented, -the con-
sultants said that reductions of
such an' order were necessary
to make Air New Zealand a
" taut fighting ship."

The consultants -were also -
critical of the proposed exten-
sion of the ,Los .Angeles -to
Xhndbn’ route, due to come into
service on August 25. This, it
.said, ‘could prove an ill-timed
dedsBon, because there could, be
unaccounted costs, and traffic
forecast on the route could

' prove over optimistic.

The analysis was sought by
. New Zealand’s Treasury, which,
will have to make good last
year's loss. The investigation,
however, carried out by Colker
officials who cross-examined
-managerial staff in Auckland at
all levels, west much beyond
the original financial audit.

. It provided a 250-page report
for the New Zealand Cabinet

Mr Norman Geary
Cleft), recently took
over -as chief executive
of Air New Zealand, and
is handling the str eam -
lining of the company,
with a view to its retain-
ing to profit in two
years. Heavy staff cuts
are among the moves
being made, which he
believes are recognised
by most employees.

Mr Robert Muldoon, the Prime
Minister, released a 17-page
summary for the public. - *
The Colker report recom-
mended staff cuts in all areas,
from pilots to cabin crews. Air
New Zealand, had acquired a
reputation of becoming a vast
employment: agency and its
over-staffing was well known
within . New Zealand. .Under
union agreements, pne cabin
crew member had to be allo-
cated to every 32 seals — whether
these bad passengers or not
About NZ$3m could be saved
by catting 170 from cabin crew,
and another NZ$5m by reducing
ticketing and sales staff by 250,
said the report
The. report also made a call
for the airline’s streamlining its
management structure - and trim-
ming costly work rules.

The .report 1 conceded that,
large scale dismissals faced the
possibility of bringing "strong
industrial opposition, ana

POBIUett-MHL

recommended that the board of
directors should be enlarged to
indude represe ntati ves . of
labour organisations and of the
flight crew. . ,

In the past Air New Zealand
has expressed pride in its profit-
able service and - maintenance
divisions, which supply catering
and engineering facilities to
other airimes flying into Auck-
land. However, the authors of
the report said these should be
separated from the airline and
operated as independent organ-
isations. tendering for Air New
Zealand’s work and competing
for work from other airiiiwg-

Tbe report compared Air New
Zealand unfavourably, in terms
of its size, staff numbers and
management efficiency, with
comparable airlines in the U.S.

"Air New Zealand manage-
ment’s structure represents
a cumbersome bureaucracy
characterised - by excessive
layers of managers and
personnel. Decisions are prone
to be poorly constructed and ill-
tuned. and can slip by without
adequate challenge."

. The .airline, . the report sug-
gested, should provide the New
Zealand Treasury with a three-
year forward forecast of its
financial operations. This would
enable the Treasury and the
Government to -estimate toe
amount required from the tax-
payer to meet future financial
losses. The Government could
then decide on whether the
public benefits from running a
national airline outweighed the
public costs of meeting losses.

One solution mitot. be *n se*'’:
a merger with an Australian air-
line, to operate on a regional
basis. In making this sug-
gestion toe Colker Report was
echoing recommendations put
forward some years ago, when a
merger between Air New
Zealand aud the Australian
national airline, Quantas was
mooted.

- Mr Bob Owens, toe chairman
of Air New Zealand, has, how-
ever, -dismissed such an idea —
which is one that does not, in
any case, lend itself towards
the favour of toe New Zealand
public.

AUTO-ESTRADAS DE PORTUGAL SARL

US$50,000,000

Medium Term Loan

Quanmteedby

THE REPUBLIC OF PORTUGAL

Managed by

Banco Portugues do Atlantico Banco Totta & Acores

CIBC Limited Daiwa Bank Trust Company

Security Pacific Bank

PrauHedby

AIItp H Trish ~R »nlcfi T ,fmite rl

Banco de Vizcaya, S A.

Banco Espirito Santo e Comerdal de Lisboa, London Branch
Banco Portugn&s do Atlantico, Cayman Islands Branch
Banco Totta & Azores, London Branch
Bancomer SA (Mexico), London Branch
The Bank of New York, New York
Banque Veuve Morm-Pons
Canadian Imperial Bank Group
Christiania Bank og Kreditkasse
The Commercial Banking Company of Sydney Limited
Daiwa Bank Trust Company
. European American Finance (Bermuda) Limited
The First National Bank of Boston
The Hokuriku Bank, limited
Manufacturers Hanover Banque Nordique
Nippon European Bank, S A.

Nomura Europe N.V. •

The Saitama Bank, Ltd.

Security Pacific Bank.

Thkngin International Bank (Europe) SA

Agent

Banco Portugues do Atlantico, New York

* : ■

I

1 >7l
1 ill

V/iTJ

(1 kV

lj

M\

ip

] A

111

Asweenterintoanewepaof

■becomes atop priority for Arab
Banks. Specialization and the
development of expertise
command special attention, too.

Strang capitalizadqnandthe
creation of diverse banking
services will enablcus to -
primarily cater to the financial
needs of oar clients inparticular
andthe^xab region ingeneral and *
allows ns to actascQumutsfor-

intennediatmgllieir capital
resources.

ArabBankiiigCoiparafioa
established branches inLondon
andNewYork,with another branch
to follow shortly in Singapore.
Other financial centres arc being
. studied with interest and to co-
ordinate our business develop-
ment plansin Europe, aiepresen-
tative office bas been established .
iftthemeantimeinLcmdoa .

■ Since establishment ABChas

deaxtinwholesaleh
activities such as in

international syndicated loans and
the management of and tradingin
securities issues, commercial
banking and investment advisory

services.

additional banking services arc
offered to meet with our clients
and carrespondents requirements
■worldwide;

Head Office:

AIiaBnilcfiDg”I)iplQii^cArta^PO Box 5G9S>IanaijJii, Stale ofBahtaln.Telq)licmc: 232235.Teles: 9432 ABCBAH.

NcwYorkBrandc

S45BarkAvcfluc.XcwyatkNY10l67Tel<Thane:(212)850060Q.Tdtai42758lABC2?S

Companies aad Markets

WORLD STOC K MARKETS

Financial -Wednesday June 9

NEW YORK

[ June

Stock | 7

ACF industries.., hit,

AMP... . :

AMIttn *4

ARA 274 |

ASA 31*1

Avx Corp 16 t b |

Abbot Lads ?84 I

Acme Cleve- 17*8

Adobe OH & Om I ?? 1
Advanced Micro. 224
Aetna tile * Gas, BJ's
Ah man son (H.F.I, Bsg
Air prod* Cham

Akzona

Albany Int

Aiberto-Culv. i 1*4

Albertson's — ....[
AlcarAlumlnlum 164
Aico Standard.... 204
Alexander A Al... 244

Aiegbeny Int 251* I

Allied Corp 32ss

Allied Stores 28 Sb

Allis-Chalmers.... 124
Alpha Portd 114 I

Alcoa S3 i

AmaJ. Sugar <1=4 j

A max 214 1

Amdahl Corp ; 197 B ;

Amerada Hess.... 21 4 I

Am. Airlines 1 S 7 b i

Am. Brands .. 39 !

Am. Broadcast's 3S7 B ;

Am. Can 275* |

Am. Cyan amid.... 275 b J
Am. Elect Powr. 167 B .

Am. Express 414 i

Am. Gen. Insnce. 39'«
Am. Holst ft Ok... 13 1 b /
Am. Home Prod- 33 4 .
Am. Heap. Suppy <05 b
A m. Medical Inti 19

Am. Motors. 35e I

Am. Nat Resoes.; 30Sa 1

Am. Petflna 684 .

Am. Quasar PeL,| 8? B I

Am. Standard — 82

Am. Store* 40 J4

Am. Tel. ft Tel. 31 4

Ameteklnc 274

Amfac 2014

AMP 527 B

Amstar 201*

Am stead Inda-... 205a
Anchor Hockg.... 134

Anheuser-Bh 49 >s

Archer Daniels... 15
Arm co. 175*

Armstrong CK — ' 164

AsamoraOJI- 74

Asaroo l9Ba

Ashland Oil 237s

Assd. D.Qoods... 32

Atlantic Rich 415s

Auto- Data Prg.... 24 4

Avoo 152*

Avery Inti 1 24 ig

Avnet 454

Avon Prod £27 8

Baker Inti S3

Balt Gas ft El 234

Ban Cal 21i*

Bangor Punta ... 16is
Bank America ... 16Je

Bank of N.Y 3Baa

Bankers Tat N.Y„ 277g

Barry Wright 134

Bausch A LombJ 415*
BaxtTr&v Lab.... 335*
Beatrice Foods... 185*

Beker Inds 54

Bell A Howell ... lB5g
Bell Industries ... 16

Bendhc 484

Beneficial 175*

Beth Steel _.|

Big Thee lnda.....l
Black A Daoker J

Boeing.

Boise Cascade

Borden

Borg Warner

Branlff Inti

Briggs Stratn

Bristol-Myers......

BP,,..

Brookway Glass.
Brown Forman B

Brown Qrp

Brown A Sharp...
Browng Ferris....
Brunswick

Bucymm-Eiie .....
Burlington ind ...
Burlington Nrthn

Bumdy

Burroughs..........

CBI Inds

CBS

CPC Inti-

c$x

Cam pbell Red C
Campbell Soup.-
Campbell Tagg -
Canal Randolph.

Can. Paolfia

Carlisle Corp

Carnation —

Carp Teoh !

13 Ib 135a
31 2 H«

44 Jb 44 1 g
IBI 4 16 1*
531* 335a

335a 335*

361* 365a

35 1 344

40 405*

11 10
345a j 341*
235* 234

3358 334

2058 205a

22 E14

31 314

344 34

Carter Hawley .J

Caterpillar

Colon eso Corp...

Cental

Centex -

Central A Sw

Central Soya

Certain-teed

Cessna Aircraft..
Champ Home Bid

Champ Int.

Champ Sp Plug-

Charter Co

Chase Manhattan

Chemical NY

Cheaela Pond.—
Chioago Pneum-

Chrysler -

Chubb

Cigna.

Cincinnati Mil....

Citicorp

Cities Service.....

City Invest

Clark Equipment
CJeve Cliffs Iron.

Clorox

Ciualtt Paaisy

Coca Cola. I

Colgate Palm j

Collins Alkman...]
Colt Inds

355, 365*

201* 205s

254 26

36 384

2178 824

195b 19

lBfe 184
134 135*

17 174

335s 334

164 16 7 a

12 114
224 224

Columbia Gas.,.. 30
Columbia Piet.... 704 | 704
combined Inf..., 20 j 80sg
Combustn. Eng.J 28 |a j 884
! cm with. EdlsonJ 284 28

comm. SateliteJ 634 ! 64

Comp, science...

Cane Mills. |

Conrac j

Cons Edison

Cons. Foods. {

Cons Freight

Con. Nat. Gas

Conmuer Power
Corn. Air Lines...

Conti. Corp

Conti. Group

Conti . Ulonls.

Conti. Telep —
Control Data ......

167b 17

407b 404
224
145*
224
504
295*

Cooper Inds

Coors Adolph—..

Copperweld

Corning Glass —
Corroon Black—
Cox Broancast'g

Crane- -

Crocker Not.

Crown Cork

Crown Zell-

Cummins Eng ....
j Curtiss-Wrlght ...

Damon- ......

Dana ......

Dart A Kraft. —

Data Gen

Dayton-Hudson -

Deere,

Delta Air

Denny's—

284 29

IO 4 11

134 134

46 464

204 204

27 4 267g

224 224

264 27 4

235* Z3T B
184 197 a

324 324

42 43

74 I 74
27 ! 267 B

615* J 6l7g
261g i 25
39 334

254 257 B

31t 8 314
234 234

Dentsplylntl 234

Detroit Edison— 124

Diamond Inti 394

Diamond Shank.. , 19

DIGIorglo 9

Digital Equip 72

Dillingham 10

Dillon 22

Disney (Walt) 344

Dome Minas 85*

Donnelly (RR)-... 404

Dover Corp ’ 205*

Dow Chemical -J 215s

Dow Jones J <24

Dresser. j iar B

Dr. Pepper I 124

Duke Power < 224

Dun A Brad— .J 674

Du Pont - ; 324

EG AG. ! 174

I Easco ( 184

Eastern -Airlines. 64
Eastern Gas A F. 185*
Eastman Kodak.] 70*8

Eaton -I 294

Echlln Mfg j lira

Eckherd Jack — ..1 18 4
Electronic Data.! 275*
Elect Memories.! 37 B

El Paso— I 194

Emerson Elect..' 434
Emery Air Fgt ... 77 B

Em hart.. — J 34 t B

Engelhard Corp-J 224

Enseroh.. 194

Earn ark 464

Ethyl 19

Evans Prod 95*

Ex Cell O I 22

Exxon-.;... I 277 S

FMC *4

Fabergo. J 134

Fodders— 1 34

Federal Co , 225*

Federal-Mogul.... 20 4
Fed. Nat Mort... 94
Fed. Paper Brd... 19 4
Fed. Resources- 0r B
Fed. Dap. Store* 414

Fleldcrest Ml 22

Firestone. - 104

1st Bank System 30
1st Charter Fin J 9 s *

1st Chicago. 14T(

1st City BenkTex 24
1st Interstate.—] *7
1st Mississippi.... 94
1st Nat Boston- 234

1st Penn..- 34

Fisons, 64

Fleetwood Ent... 145*

Flexi-van _. 165*

Florida Pwr A L,. 3J7 B

Ford Motor- 22

Foremost Mck—. 294
FOater Wheeler— 11
Freeport MoM— . 167 B

Fruehauf- 194

GAP— 114

GATX. 864

Gannet

Gelco— . — —

Gen Am Invest —

Gen Cinema

Gen Dynamics ...

Gen EJaotrlo

Gen Foods

Gen Instruments

Gen Mills...-

Gen Motors ......

Gen Pub Utilities

Gen Signal

Gen Telep Bec_.

Gen Tiro

Genesee — .........

Genuine Parts—

Georgia Pae.

Geosource

Gerbes Prod

Getty Oil

Glddehs Lewis—

Gillette —

Global Marine—..

Goodrich (BFI !

Goodyear Tlre....|

Gould •

Grace I

Grainger (W.W)_|

347 8 i 347 b

135* 144

414 424

29T B [ 294
60 I B 04
16 | 16
314 j 314
117b 114
194 I 194
23 J 227 B
234 i 227 B
34T S | 54 Tg
374 38

264 I 8678

tow ! High | Low

Belgian SE (31/12/95)

Copenhagen SE (1/1/711

102.46 (B/41 | 86.42

Induet’l Div. yield %

STANDARD AND POORS

June 4 j May 28 , May 21 Year ago (Approx]
6.93

114 .il 72052 mm 111.84 ( 8 / 6 )

9U (4/1)
■W (4/1)

AFTER- FI3JCTUATING witbin
a narrow - range as investors
awaited .some positive news.
Wall Street made a m£xed sbow :

ing at mddiseGslon yesterday.

Analysts .uadd the ' .market is
poised for a rally, but investors
are rehictaat to start buying
aga&zst' a background of high
UJS,. interest rotes, a poor
economic outlook and the
hostilities in the Middle. East

The' Dow Jones Industrial
Average was a slight 1.62 harder
at 806.65 at 1 pm, while the
NYSE AH Common Index was
3 cents softer at $83.33. There
was a fair turnover of 36.26m
shares, exceeding Monday’s
1 pm figure of 30.21m.

Wall Street's pessimism about
the -outlook for the recession
and its impact on corporate
profits was reflected in the
activity of IBM, one of the most
popular stocks among institu-
tional investors.

IBM was off 1} to $58} on turn-
over of about 1.4m shares, in-
cluding a block of 586,800 shares
traded at $58i.

ULric Weil, a computer analyst
with .Morgan Stanley, said more
IBM customers have delayed
taking delivery on IBM's new
3081 computers, which are ex-
pected to account for 10 per
cent of the company's earnings
this year.

Oil Drilling stocks continued
to weaken, with NL Industries
off 8 to $20 and Newparfc Ser-
vices 1 to S7|.

THE AMERICAN SE Market
Value Index was just 0.05 lower
at 257.95 at 1 pm after volume
of 2.65m shares (2.79m).

Canada

Markets in Canada also pre-
sented a mixed appearance at
mid-day after quiet dealings. The
Toronto Composite Index was up
a marginal 0.6 at 1,459.7, but the
Hold shares index, after rising
55-2 the nrevious day, receded
23.7 to 1,865.4.

Closing prices for North
America were not available
for this edition.

Tokyo

Some export-orientated Pre-
cision Instrument, Light Elec-
trical and Moton issues recovered
same ground yesterday, hut stock
prices overall mainly ended
narrowly - mixed after light
trading. *

The Nfkkei-Dow Jones Average,
which retreated a further _45
points on Monday, eased a slight
2.36 more to 7,240.03. The Tokyo
SE index edged up 0.24 to 542.48
after ending 2.67 weaker the
previous day. Volume was a low
180ra shares hut an improvement
on Monday's -130m.

Traders said the growing
tension in the Middle East in
the wake of the Israeli advance
into .Lebanon and -'also the'
Falklands fighting continued to
weigh heavily on trading. The
increase in a U.S. prime lending
rate also kept jnarket partici-
pants on their guard.

Investor caution was also
heightened by news that a
former Government transport
minister and his deputy were
found guilty and - given sus-
pended sentences for their' part
in the 1976 Lockheed pay-off

scandal.

The possible Implications of
the verdicts for .the current
Liberal Democratic Party
Government of Prime Minister
Zenko Suzuki were behind the
caution; traders added.

However, of the brighter spots,
Canon rallied . Y18 to Y794,
Hitachi Y1S to Y683, Honda
Motor Y7 to Y715, Olympus Y18
to Y893, TDK Electronic Y40 to
Y3.7Q0 and PI oner Electronic Y30
to Y1.560. .

Housebuilders, - Construction
companies and; Real Estates fell
an recent slow house starts and
apartment sales. Ohbayashl-Gumt .
lost Y9 to Y225, Hasegawa
Komuten Y5 to Y570 aqd Mitsu-
bishi Real Estate Y5 to Y430.

Mounting international tension
gave speculative Gold Mining
issues and other Non-ferrous.
Metal shares an uplift. Oils
hardened on the prospects for
a tighter oil market as. a result

gf Jthe ••fighting la; -the. ijBddter:.; JJ^ug :: i

” v ' y.- Shares ^ siSed v va/*' half.’ i

Germany vbearted .nflly. on , lighf iairgain i

.-J? bunting.-.ii^'-eb^meiyrthSi deai-

• After Monday's broad; retreat,, - jugs yesterday'. '•
the ‘ market started on. a. hesitant w. : „■ j' . vV, ' .. :

note yesterday, due:to newsbf a- w ^ llcIt :

. DM ■ 242m deficit c -in. . West -
Germany^ April overall. balance
•of payments - i and “a, fall'-

~ v eba’s first-quarter profits. How- '

ever, bargain hunting brought a f • ’•
recovery later, : lea^ng stocks the. pc^ious -dayV HR$20fi.s4aL^ •
firmer-inclined on the 'day. The, Brokers nojed tfiat the ;. Middle
Commerzbank index, 'down. .8.3 East tension contitiued to diverts
the previous day, recouped 1.6- at inveslprs' v attention r mainly !
693.6. ' away from ; st ocks tp.-pther -finaftT ’ ,

Timbers _«i3- an of " ^ ^ inStfcan«lts. -Su^ 25* '

weakness .fit the- Bond.' mhfket. They ; added that- tber inaAet . .
stood In tiie way of an acrossrthe- has managed toi-'h.old above
' boajd rally.. . ' . ^.S^ index: support^verf«!;%;

board rally. 1 ' -'. ni, 339 Index: support ^eaer- j

• time betng ; and "is -Bkeay forte- 1

main above that • point ^unfess - .1
.offspnng- of .- , .the- ^former . thtarr _ ——

.ssasairsKSSgr - 1

W.Dit^ and Hamhom . HoweV e r> --they, isafii - the^n i
DM m - activity signals the; Tcdarfer d

In contrast* Utilities , issue is not ready to
Veba receded DM 1-90 to out some better news
DM' 124.70 on its poor quarterly rates or corporate developmenta.
results. _ - . . - • -/-i--: —

In Chemicals,.- Hoechst was Andrallfl .
little * affected .by. reports that “ '

Kuwait has an 18 per cent stake Markets drifted -slightly easier
in the- company a od closed only in quiet- and -featuyelKs trading

DM OJO up at DM- H9.10.

with the major-Mihers aBd^Jojd

The Donjfistic Bond market stocks showing. Jittie-;. rename '
closed weaker, unnerved by the • *?- 'the . sharp r^^-- to. VGSa •
indecisivenesS. of - the Bonn -Bullion in New Yoifctxv^rnigit.
Cabinet on -how to cover the- ■ . There was tittle
multi-hiilion lMnark deficits in terest- and few . local . BeJJers,
West Germany’s 1982" and 1983 ' brokers said,. adding:lhat-tiaden - '
Budgets. Prices of Public Bonds- were still waiting f
dipped as much as 60 , pfennigs.- lead; from WaU. sari^;;;-.^;;^. : '
The Bundesbank bought DM Among Gold -
62.6m of paper, compared with . Wallsend lost lO cents at'A$L8£
DM 83.2m : purchased the pre- while Posdden edgetL up^u'bent j
vioufi day. • " ■ to A$lv50 and Central>UotB«i&i .

_ l ' . -,f , ' ; IQ cents to A$4.30. ; , '

Switzerland ; --- . ICI^ Ausfialla dedinecL 8. "’L

„ „ to AS1.53 for a twri-day ftll

Bourse, prices generally. / u m ^ raduced^^-tbS

declined as- volume : rose m . a pro fits.. ‘ .• '

Bourse, prices generally. ■ ^ cents on the reduced^isffitii^
declined as volume : rose m a pro fits. ' • " '

late • reaction ' ;to; ..Monday's . * -V

increase . in.: Customer Time - 1 - t~j, QmiM :knro: - - - \ f ’ %. *• :
Deposit ■ rates by Swiss Banks. JOHaimesOin^ r- .

■With ' the ' Swiss franc weak Gold ' shares' ' vrere; k
and dollar rates high, Swiss modestly firmer, rib the jp611 ^& A
shares are increasingly losing ibe Buiilon price', '.Gafttt.ran: .
attraction for both foreign and Heavyweights were: limtede to Rl,-.':-
domestic investors, dealers said., as in Buff elsf ontelnjR35. ■

CANADA

Stock |

June 1 June

7 , *■

amca inti.. . J

Abftibi

Agnicc Eagle......

Alban Alumin.,..

Algoma Steal

Asbestos; —

Bk Montreal <

Bk Nova Scotia... 1 .
Basic Resources*'

Bell Canada |

Bow Valley

BP Canada

Braacan A

Brinco

B. C. Forests

OIL Inc

CadlllacFairvlew.
Can Cement.:.....'
Can NW land*-. J

iB 7 B 16
164 ‘ 16
64 1 64
207 t ' 204
284 30l B
114 ! 114
204 204

214 ! 214
2.60 , 2.50

194 • 194
144 , 144
27 , 27

164 ' U4
3.40 1 3.60
87 B I 9
224 - 22

Z* 8 ' Z 6 *

9 -9

21 , 214

Can packers....... 304 304

Con TTUSOO 22 T b 234

Can Imp Bank... . 197 B 194

Cdn Pacific 234 264

Can P, Ent. 144 144

Can Tiro I 344 344

Chieftain.. 1B4 1B4

Copilneo. I 364 364

Cons Baths* A. ... 144 144

ConL Bk-Canada' 64 64

Cose ka Res 4.45 4-80

Costaln _i 64 . 64

Oaon Deval 2.92 3.10

Denison Mines.- J 194 IBS*

Dome Mines 11 lOfis

Dome Petroleum! 64 64

Dom Foundries J 33
Dom Stores... ... M j 164

Domtar.. — 167 B

Falcon Nlokle_J 46

Gen star, ...... 1 127 b

GL West Ufa 1200

Gulf Canada. 1 134

Gulf Stream Res. 2.45
Hawk Sid. Can... 84
Hoilinger ArgusJ 264

Hudson Bay Mngl 144 I 144
do. OH AGas...l I 84 164

Husky Oil j 64 1 64

Imasco 374 ' 384

Imp Oil A 23 ! 23

Inco ' Z14 i 114

Inda! 94 ■ 94

Inter. Pipe.. 167 B ; 165*

Mac Bloedal.;.. ..'
Marks A Spencer

Massey Fora

McIntyre Mines..

Mitel Corp

Moore Corp ’

Nat. sea Prods A
Noranda Mines...)

Ntton. Telecom... 1

Oakwood Pet

Pacific Copper.,. [
Pan can Petrol^.,

Patino- ;

Placer Dev •

Power Corp

Quebec Strong.]

Ranger Oil.

Reed StenhsA..J

Rio Algorru. .<

Royal Bank

Royal Truaco A...'
Sceptre Res....^..,

Soaeram ,

Shell Can Oil [

Steel of Can. A....'

Teck B !

Texaco Canada--
1 homson News A.
Toronto Dom Bk.
Trans Can Pipe...
1 rana Mntn.'OIIA.
WalkertH) Res-...
Westcoat Trans..
Westen (Geo)

194 ' 194
10 l 10
2.35 2.53

274 ' 28
16 164

364 ! 36
74 ' 74
1 13B| . 14

.46 t S j' 464
104 104

1.54 1.33

664 67

21 21
12 114

94 94

2.51 2.45

74 I 7
117 B I 12
294 ! 301*
204 , 204
127 B 1 13
4.95 • 4.85
61?b i 634
167a | 17
194 I 184

54 ’ 34
264 1 264
204 207 S

28 I 244
18i* l 184
74 74

I 64 -164
124 124
314 1 304

—

«inon-...„ • /

citizen

okbo

Dal Nippon Ptg.'.

—2

Dalwa House."...

Dalw* Seiko-

Ebara— .....

Fu]

FuJ

ru]

1

Bank

Film

raws

=3

MONTREAL

Industrials

Combined

1,330 —30

TORONTO Composite) leeELOJ 14«I.6!l<W.4 i »BSj| 1 S 66 J i*.|j

Monday

NEW YORK ACTIVE STOCKS
Change

Stocks Closing on
traded price day

Chengs.
Stocks Closing an *
traded price day

Housefood

ID,, any UBU1U I «iv» a ay

IBM 824,300 60 -F v HawJett-Packsrd 540.600 41 - %

Mesa Petroleum 731.000 ig» t +4 Union Oil Calif. 531,500 3 fl +14

Cities Service ... 653,900 36 — 2*j Sehlumberger ... 529,000 S0 f B — L

573.400 51*? + 4 Aetna Ufa 398,600 35»* - J ,

txxon — 642,800 TP» — Am. Home Prod. 388,000 3S 5 * - 4 I

(•*’) Saturday, June 5: Japan Dew 7,287.47, TSE 544.91.

Bass values of all Indices ere 100 except, Australia AH Ordinary and Mauls—
500. NYSE All Common— 50: Standard and "Poore— l(fc and Toronto— 1.000; the
last named based an 1975. 1 Excluding bonds, i 400 industrials. § 400

•industrials plus 40 Utilities,. 40 Finenc'els and 30 Transports. c Closed
u Unavoidable.

Financial Rand XJS$tt81f
(Discount of IIi%) '
BRAZIL

Aceslta...-- IJQ;.. +0JE

Banco Brasil

Be ISOMIrj—.

BrdnnittPp

LoinrAmer -

Man nos man n OP

Petrobras PP

SpunLCru?..;,

WltoPE- ^

Vale RtaDbcri-...

Volkswagen,.

148,a — 0.9

JW 75 -375

•W:

- *-i***-»j VrtoiicriUu^ «Juii«. .-» „*vifa

Conpaons and Markets

LONDON STOCK EXCHANGE

Ko . Base rate cats fail to generate stimulus necessary
s l for 30-share index to break record— Gilts turn dull

J T:

i* ■

rfa!s

" J ■■■!»;.
V <

‘ ’ c r>

■'■L

■ .:r ;• .

S

"s£*r
; "-'i V'

rr-'v,

Account Dealing Dates
Option

"First JDedara- Last Account
Dealings tions Dealings Day
June: 7 Jane 17 Jane 18 Jane 28
Jane 21 July 1 Jajy 2 Jnlyl2
July. 5 July 15 jrnjy lfi j n iy 26
* ~ New tiflM " dealing may Mm
P»*C» from 0 am two bwhwss days

♦flriier.

dealing bank base rate reduc-
tions of + to 1 2 i per cent failed
yesterday to inject tie stimulus
to take the long^estaWiahed FT.
• Industrial Ordinary, share index
to an ail-time record. Within less

- than a point of its April i98i
. peak of 5S7.3 soon after the open-
ing, this measure subsequently
eased continuously to dlose a net
1.4 tip at 594.0. The small overall
gain uvea, however, sufficient to

- take the FIVActuaries All-Share
index to a high since compilation
Of 34053.

A day which thus began pro
misingly for equities' in antici-
pation of increased ' investment
through tiie commitment of pent-
up funds ended rather raggedly.
Another favourable indicator,
the May wholesale price indices,
was annulled; by the month’s
dharp expansion in money
growth, estimated officially: at
around 1} per cent compared
with recent increases of only J
per cent.-

. The latter particularly affected
Government securities, which
relinquished early gains to
settle lower for the first time j n
12 trading sessions. Gains
initially ranged to £- among

- longer-dated issues a™* , ahead of

- today's application for the new

short tap Treasury 12$ per cent
Convertible 1988 in 530-paid
fans, the shorts also managed to
improve. At the close, however.
Josses to J prevailed at both ends
of the market.

In other areas of London stock,
markets, trading and other

statements, ■ including fihrf-

raising proposals generated in-
terest The most important
among these was Midland Bank's
call for £100m via the issue off a
25-year . Loan stock; the
umiMirwwMwvf Huaahed tallr that .
the . dearer was contemplating
the issue of new Ordinary shares
by way of ri^hts and the shares
responded shandy. -

Midland good

. Already a couple of pence
harder following the half per-
cent reduction in base le n di n g
rates. Midland advanced farther
to finish 12p up at 350p, after
354p, the announcement that the
bank is raising £100m via a plac-
ing of subordinated Unsecured
Loan stock 2002/07 suppressing
rights issue fears. Other major
cl oarers improved in sympathy,
with NaKWest ending 9 up. at
4555p and Barclays adding 7 aft
472p, after 474p. Lloyds' pat ofi 4
to 402p, after 404p.

Discount Houses also

np on. the move towards .cheaper

money and double-figure gates

were fairly commonplace.
Gerrard and National rose 13
to 288p. while Cater Allen firmed
10 to 325p as did Union, to 480p.
Hire Purchases also responded
favourably with Provident Finan-

1500

HEALTH &

HOUSEHOLD

PRODUCTS

F . T.- ACTUARIES INDEX

J300

M A M J

lisp.-* v« 77
>

Juno

8

June

7

Jana

4

June

3

June

2

June

.1

A

year

ago

Gavemment Son*....

7039

70.40

70.16

70.08

69.76

69.74

65^1

. 1 _ % :

Fixed Interest..

70.32

70^2

70^8

70JB8

7ft 00

70.06

67.91

' ■ • • ;

Industrial Ord.

694X

698.6

587.9

586.8

585.1

.587^

545.6

Gold Mines-...

835.7

.288.0

222.0

824.0

8800

229.4

338.9

" r ■* rf.

Orti. Dlv. Yield

' 5JS1

6.33

8^7

6^9

6^0

ejn

5J1

: 3

‘ Earnings, YM.X(full)

1UJ6

11.11

11.19

112S

11^5

UM

11.76

•

P/E Ratio (net) H

10^9

10JM-

load

10A8

1079

10JB2

1DA1

Total bargains ..iU—

17^86

16,238

17,038

15,309

14,610

15,760

19,740

.. . . •“

Equity turnover £ra.

—

188.40

136.90

183^6

129A5

111.74

131.83

Equity barardns

-

18,498

_14^M

1S^30|

12^iOa

12,190l

15/469

FINANCIAL TIMES STOCK INDICES

10 em 698.4. 11 am 595.1. Nbon 6S5.1. 1 pm 5W.7.

. 2 pm 584,7. 3 pm 594.1.

Basis 100 Govt. Sues. 16/10/26. Flxad Int. 1928. Induinrial Ord.
1/7/3 5. Gold Mines 12/9/56. SE Activity 1974. t Corrected.

Latest Index 01-346 KBS .

• Nil "10.18.

HIGHS AND LOWS

S.E. ACTIVITY

: . f .‘‘1988 ■

fflnooCompnat'n

Hlgfi

■tow

-HTgli'

.Low.

Govt- Sec*.-

70.40

: 81.89

137.4

49.1B

C7/B)

(B/1)

(SM«6)

(6/1/75)

Fixed Int....

70.38

.63.79

CVJ1>:

150.4

CM/11W7)

50.53

(B/T/7S)

1 nd. Ord... „

594J0

m

518.1

(S/1)

597.3

(M/4/81)

49.4

IW)

Gold Minos.

308 jO
CB/T) '

209.8

558.91

(22rtlU)

43/5

(28/10/71)

June

1 - 7:

■ k-UtjVU

Bargains...
Equities
Bargains..
Value ......

Bargsirr*.
Equities
Barga ins..
Value 1

1BU

i

eij3\

saw,

B4J

964.6]

June

186.6

96.1

975.9

178.01 176-9

•85.4

260.1

dal notable for a rise of 6 ait
127p.

Burnous of a bid or dawn raid
from overseas again brought
Aout a. ready response from
BUnet, which touched a 1982 peak
of 207p before closing 2 dearer
on baSance at 204p. C. £. Heath,,
recently talked of as a possible
merger partner for Minet found
support and jumped 14 to 327p.
Elsewhere in Insurances, London
United Investments gained 8 to
187p.

Disappointing interim figures
from Bass, down 7 at 240p, after
248p, tended to dampen initial
enthusiasm for the Brewery
leaders. AHied-Lyons, up to
lOlp at one stage, dosed un-
altered on balance at 90p-
Regioiufls, in contrast, made a
bright showing. Young A im-
proved 7 further to 320ft while
Burtonwood gained 8 to 44Sp
and Beddingtons 5 to 171p.
Baddies were 6 dearer at 174p.
Elsewhere, HP Bolster advanced
13 more to 435p. and Merrydown
knptoved 5 to 88p.

The trend towards cheaper
money prompted fresh support
for Building' descriptions and
Cement issues made a particu-
larly firm showing helped by talk
that deliveries were picking up.
Blue Cird e rose 12 to 47Qp.
Tarmac gained 12 to- a 1982 peak
of 598p, while BPB Industries
touched 470p before settling a
net 4 op at 468p. London Brick
firmed 3 to 104p, while Notting-
ham Brick, a. thin market,
jumped 10 to 175p. Further
small buying lifted Barnett
and Hall am shire 30 to 885p and
Wilson (Connolly) 8 to a 1982
peak of 233p.

Interest in leading Chemicals
faded and Id, after opening a
shade firmer, drifted off to close
2 cheaper on balance at 330?-
FJsons edged, up a. couple of
pence to a 198? peak of 365p-

Habitat firm

Habitat stood out among
Stores, rising p to 154p. Else-
where. -N. Brown Investments
gained 5 to 128p. on further con-
sideration of the preinnlnaxy 5
flgures. Bambers revived with a
rise of 3 to 26p. Foster Bros
added 4, at 68p, as did Harris

Queensway, 194p, end A. G.
Stanley, dip.

, Plessey coo tinned to attract
buyers on defence spending con-
siderations aim rose 10 more to
465p. GEC recorded a fresh 1982
peak of 960p in the earfy trade
but reacted on lack of fotiow-
tbroogh rapport to close only the
turn harder at 955p. Recently
troubled by rights issue fears.
Thorn EHE peeked up 6 at 423p.
Elsewhere in Electricals, Stan-
dard Telephones and Cables put
on 10 to 61Sp as did Lee Refri-
geration, 230p, while Sound Dif-
fusion firmed 8 to lllp- CASE
were unchanged at 303p; • the
-company has an official listing
and is not traded in .The Un-
listed Securities Market as
stated here yesterday.

Inclined harder initially, the
Engineering leaders turned
easier and ended a few pence
cheaper on balance. In contrast
TI were dull throughout and
dosed only a couple of pence
above tee worst at 138p, down 6
on the day; a large line of shares
was reported to have hem on
offer. Among secondary issues,
revived demand in a limited
market left Yarrow 20 Mffier at
385ft while Chemring, reflecting
Press mention, finned 10 to 390p.
Thomas Locker responded to the
increased dividend and profits
with a rise of 3} to 17p, but
lower annual profits left Capper-
NeOI e couple of pence lower at
■67p. Westland closed 3 down at
117p awaiting today's interim
figures.

Food Retailers displayed a
firm appearance. I. Salnshnry
rose 5 to 635p and Associated
Dairies 4 to 134p, while Bishops
A. stria reflecting the better-than-
expected preliminary results,
added 5 more to llOp. Elsewhere,
Chambers and Fergus met
revived support and put on 4 to
34p. - while Albert Fisher
touched 48p before closing a
net 2 dearer at 47p. Carr’s Hill-
ing Industries put on 5 to 79p
in response to the. good interim
results, while Glass Glover, half-
yearly results due on June 29,
gained 8 to 142p.

Grand Metropolitan touched
231p before reacting to dose a
penny cheaper on balance at
227p; the new nil-paid- shares
also settled a penny easier on

balance at 55p premium,

59p premium. Among other
Hotels and Caterers, Queens
Host Houses added a penny to
29J-P following a Press mention,
but Brent Walker lacked sup-
port and died 6 to 73p.

St George’s up

Demand ahead of Friday s
preliminary results helped PUk-
lngton to dose 11 better at 24Sp
among mixed miscellaneous
industrial leaders. Reed Inter-
national picked up -4 to 326p,
after 330p. following a re-
appraisal of the results, ■while
Bowater revived with a rise of
6 to 220p. Beetdtt and Column
rallied 6 to 3Q2p but Glaxo, after
touching a 1982 peak of 720p,
closed a couple of pence cheaper
on balance at 715p. Secondary
issues provided numerous
features. St George’s Group
advanced 6} to 138p, after 141ft
on news of a bid approach and
Extel jumped 13 to S53p follow-
ing revived investment demand, j
R ock Daxfaam gained 2 to 14p in
response to the chairman’s en-
couraging AGM statement, while
Sketchley firmed 3 to 269p des-
pite the proposed £7 125m

rights issue which accompanied
the results. Still reflecting
investment comment, Whatman
Reeve Angel gained 5 more at
310p. Consultants improved Z
more to i84p. Rotaprint lost 2
to 1 Op on the proposed £L4m
rights issue and .details of losses
incurred during the last financial
year. Amalgamated Metal came
on offer and fell 20 to 390p, while
Sothebys were also friendless at
290p, down 17; the latter’s half-
year figures are due early next
month.

Dowty met renewed support
and firmed 5 to 141p. Garages
were irregular. Revived demand
in a market short of stock lifted
Lex Service 5 to 130p, but lack
of interest left Henlys 3 cheaper
at 89p.

Small buying in a restricted
market lifted book publishers
Roatledge and Keegan Paul 20
to 200p.

Indme d firmer at first on the
base rote cuts, leading Properties
drifted off to close virtually un-
changed, although secondary
issues made progress in places.
Daejan met support again and
put on 6 for a two-day rise of 11
to 167p, while Lalng Properties,
186p, and Espley-Tyas, 91p, added
3 apiece.

Oils quiet

Oils usually closed a shade
cheaper after a slow trading
session. Inclined harder initially,
BP closed 2 off on balance at
322p, but Shell finished that much
dearer at 424p. after 426p. Out-
side of the leaders Premier
responded to the preliminary
figures and proposed scrip issue
by rising to 51p before drifting
back on lack of follow-through
support to close only a penny
firmer at 49p. Marines continued
to make progress at 123p, up 5,
but Clyde turned dull at llOp,
down 8.

Among financials, RKT
advanced to 147p in response to
the recovery in half-year profits
before closing 3 firmer on the
day at 141p.

Firm shippings were featured

by a rise of 13 to 468ft in British
and Commonwealth. Still reflect-
ing the deal with J- Fisher,
Hunting Gibson hardened 2 for
a two-day rise of 19 to l20p.

Fresh selective support was
evident in Textiles. Jerome Hold-
ings were outstanding at 72p, up
7, 'while Nottingham Manufactur-
ing continued to make progress
With a further gain of 6 to 188p.
Nova Jersey firmed 3 more to
82p, while rises of 2 were marked
against R. Sraallshaw, 29p, and
Buhner and Lamb, 40p. Atkins
Bros, hardened a penny to 74p
following the preliminary figures.

Tobaccos followed the general
trend, Imps closing without alter-
ation at 98p after touching
lDOp in the early dealings.

South African industrials made
progress with Barlow Rand clos-
ing 14 up at 332p and OK Bazaars
40 better at 725p.

Golds ‘advance

Gold shares made another
bright showing, boosted by yes-
terday's farther rise in the bul-
lion price and the generally
good dividends from the Gold
Fields group mines.

Share prices, were marked-up
at the outset, reflecting strong
gains. in -gold and gold shares in
overnight U.S. markets, and
made further progress in front
of and following the Gold Fields
mines' dividend declarations.

However, a late downturn 14
the bullion price, which dosed
$6 np at $330,375 an ounce after
having touched around $336 in
unofficial trading earlier,
prompted scattered selling from
the U.S. and share prices closed
a fraction below the day’s best
' Among the dividend declarers,
the payments from Doornfontein
and libanon were particularly
well received with both np 27 at
768p and 782p respectively.

The payments from Driefon-
tein, § firmer at £10, and Kloof,
i better at £12J, were considered
to be satisfactory while Deelkraal
managed a 5 gain to I59p
despite the dividend ommission.
The next batch of June divi-
dends, those of Grootvlei, Marie-
vale and St Helena, is due on
Friday.

The Gold Mines index put on
7.7 more to 235.7— a twoday gain
Of 13.7.

In South African Financials,
UC Investments gained 35 to 425p
and “ Amgold * J to £31 While
London issues were highlighted
by Rio Tlnto-Zinc, up 8 at 420p.
Australians remained in the
doldrums. '

The volume of business, in
Traded Options contracted with
the number of deals reduced to
1,584 from Monday's 2^80.
Imperial were again fairly busy,
recording 325 contracts— 265 calls
and 60 puts.

RISES AND FALLS
YESTERDAY

Rises Falls Sams

British Funds 7 55 30

Carpns., Dom. and
Foreign Bonds ... 2D 3 54

Industrials 358 W« 833

Financial & Props. . 174 46 291

Oils 17. , 27 65

Plantations 3 4 .16

Minas - 56 21 82

Others <7 40 . 63

31

Totals

600 342 1.434

RECENT ISSUES

EQUITIES

Issue

price

P

1=

il

gie

82

High

Low

4250

F.P.

23/6

278

265

*90

F.P.

—

101

92

15

F.P.

16 4

32

19

5260

F.P.

4/6

420

293

5150

F.P

86/5

161

140

J87iap

F.P.

25/6

88

84

mm-

17

10

(250

F.P

14/3

260

245

1105

FJ»

ISl

no

600

F.P.

570

535

77

F.P.

97

88 .

140

F.P.

174

160

•n

F.P.'

29

19

w

FP.

90

50

Stock

go

C rj

fa

o

1 $ Black (Mfch&Al) 20w
Cambrian ft Gen.74p

*Cont. Mlorowavo —

>5 Druck Hldga.

Electro- Prat. US60.S0

[aGroup Inv Option

jiRadlo City 'A* HV_
Ruddle IG.1 10p...._

Stewart Naim. J

Zambia OonrCpr IDKt

\+ or i

178

SO

31

1490

161

85

14
1847
11 7
1635
93
174
81
50

+1

+ 3
+ 1

l-l

-IB

Q 5

s*

H

bB.O

u3.0

b5^6 za
08.3 1 2.5
uQl£o B.B

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bQfiOc 2-2

BSld

S3

s*!

o'*

Hd

1JB

8.0

1.01

2.4

4.4
B.B
8.7

\n.i

15,7

16.6

| 2».0

1.6

IflJ

IDJi

1DJB

20.6

FIXED INTEREST STOCKS

lsaue

price

£

*100
IS 8. 5S3|
flDO

■flOO

moo

1100

4100

1100

iioo

<100

mo7

flOO

§5*

I?

< a.

« e o

Sis

15S 15

i£10

£25

F.P.

F.P.

F.P.

F.P.

. Nl <
IfilO
( FJ\
F.P.
FJ*.
F.P.
^10

14/7
II 7

E

8

pi

gn»

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B y W

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BO

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flri'ioi

rttjn

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EM

WESl

Stock

Do.

UG UUlIVi uiic Mia

iv. 4po Net Cum. Prf. £l
4.7pc Net Oum. Prf. £l

21

B61t

101 14
148
39
46

s jr

loose
100
lOOijd

.... «... ,Y1 14

(wroxham Water 9% Red. Prf. ’8 7-89. J 11

Mja-aouniBni mr. rr, l , v:ri < v* N "l

Natl on wide Bdg. Soo. 143«S (9S/4/83M
1 Dow lS7 B fc |B3/5/S3>’

DO. : 13tt*{Z/6/83J.J

J : 104% Onv.'BO-Slfe^....

r. t+<*

Oft

-*4

+ *S
+ IB

+ lfl

"RIGHTS” OFFERS

Issue

price

P

If

latest

Renune-

lfl

aa

■

atsofc

0.

11-

for

Low

5 a

10

170

FJ*.

FJ*.

27/4 28/5

1 3/6 24/8
28/5 9/7

135 4

190

179

mm

105s

—is

Bank Uuml (UK)£i

185

178

+T

174

56pm

44 pm

"r

56pm

4i*gm

— i
+i

8

10 IS 21/6

1

wn

618

575

615

+6

500
Dr. ISO
50

F.P.

Nil

Nil

29.5 18£

5B0

2 te pm
■ 8pm

530
8te pm
6pm

Do. A

Norsk Hydro (Kr. 100)..:

Press (Win.) lOp

690

2 ia pm
7pm
90pm
848

+10

+1~

386

180pm

284

80pm

872

— —

10

■Vl

24/3 83/4

- 181*

101*

His

133

F.P.

10/5 10/6

16Z

ispm

148

Vickers (hi).

102
is pm

—

Retraectstte data usually test day tar deeftofl free of stamp dmy- ftHgaiw
based on prospectus astimato. d Dividend rats paid or payabia on part o(
capital: eovar based on rihrtdand w fnD capital, g Assumed dividend and yield.
t Indicated dividend: cover ralitas to previous dividend. P/E ratio based on latest
annual namings, u Forecast dividend: cover based on previous year's earnings.
F Dividend and yield based on prospectus or other official estimates for 1882.
Q Gross. T Figures assumed. 9 Figures or report awaited, i Cover allows for
conversion of shares not now ranking for dividend or ranking only for restricted
dividends, f Placing pries. 0 Panes unless otherwise Indicated. 1 1ssued by
render. | Offend to holders of ordinary shams as ■ -rights." •‘Issued by wey Ot
capftsUaatkM. IS RsbKradnred. « issued In connection vritfa rsorganisattoo.
merger or take-over. || Introdoctlon. □ lasoed to former praisrence holders.
■ Allotresor tetters (or fu By-pa Id). • Provisional or partiy-peid alhmnent tetters.
* WWi warrants. ft Dasllnga under special Rule. * Unlisted Securities
Market. U London Listing, f EBectivn Issue price after scrip, t Formally
dealt In under Rule 163(2) (a). A Issued has M an sotitiemant to onKnsry;
holders.

ACTIVE STOCKS

re

Above average activity was noted in the following stocks yesterday

Slock

Closing

pries

pence

Day's

change

Stock

Closing

price

pence

Day's

changjf

Doornfontein

.. 768

+27

Minet

.. 2M

+ 2

.. 5Spm

- 7

Nat West Bank

.. 452

H- 9

Hsath (C. E.) ......

.. 327

+14

Rocal Elec

.. 430

Impsrial Group

.. ' 88

—

St Gedige's Group

.. 138

;+ ss_

.. 280

—

n

.. 138

Midland Bank

.. 350

+12

Tarmac

.. 698

1+12

MONDAY’S ACTIVE STOCKS

Based on bergainc recorded in S.E. Official List

Stock •

GEC

Allied-Lyons ...

Metal Box '

Reckitt Caiman
Baechsm

Monday *8
No. al closing
price price Day's
changes pence change

15

14

14

1*

13

Glno 13

I CL ■„ 13

954

99xd

166

296

277xd

717

59

+ 9
+ 24
+16

- 4

+ 1h
+10

- 3

Stock
Flaons ■ .

ICI

Plaseoy

Cable Wireless
Grand MBt New
Royal Insurance
BAT Inds

Monday's
No. of closing
price price Day's
changes pence change

12

12

12

11

11

11

10

363 +13

332 +2

455 i+10

285 '+5

56pm + 6
347 +12

455 H-J 2

J ri '

FT-ACtUARIES SHARE INDICES

These Indicts art the JtM ceteNMiM ef tte FtaocU Tines, tie Instftade ef
- and tie Ficdty »f Actuaries

EQUITY GROUPS

: Tue Jme 8 1982

Mm ’
Jem

7 ■

TH

tee

.4

Tter

tee

S

B

Year

' .

tiwroO

& SU BISECTIONS

Figures ta ' parentheses stem number of
stocks per section

Index

No .

ton ge
%

EsL

Eandngi
YkU %
(MnJ

fires

OH.

Yield %
(ACT
at 30%)

EsL

P/e

Mto

( Net )

War

No .

h da
He.

B

B

Mb

He .

40 SL 71

+07

MS

436

1337

f_ 1 t ' 1

|Tj

rTJ

349.07

+ur

1257

509

959

3

EE

+17

+05

I 3 JS

049

437

301

. 050
1950

y

\r^r 1

5

6

?

m

+02

+03

+ L 0

ISJfi

1099

1034

131

632

SL 59

.099

7.42

025

1099

1252

S 02 J 4

20059

27005

9406

50124

20640

18*0

9358

497 JS

20625

17024

9357

SI

48553

2 HJ 4

16152

10258

-km - .

+8.7

930

557

1239

57158

38831

31075

JMJ 3

57041

+05

12.47.

539

972

3 S 6 J 0

S 5 J 7

31471

2 H 24

-02

1099

020

074

33458

335.61

32937

306.73

3 D 54

ri

+05

1737

4 X

6.79

2UJT

m

289 Jf

26042

25877

+13

939

331

2355

81159

827 J )

61231

51642

27'

+07

+13

735

2000

356

533

2638

1253

4 B 57

43155

41094

43142

47537

44035

47377

44080

t-.X m

'-•-m

1372

535

PI

S 3 UI

I >1

hi

f *■ *

33

rrt*

+12

1534

739

732

15 X 55

15631

13842

-rn.

+05

1020

4 X 1

12.93

23 S .42

208.91

LJj

TT

268.47

274.93

+03

2232

637

932

123.96

17543

17354

15088

BUI

-83

ZL 54

038

533

mji

S 8 J 8

I . . - J

280.77

287 33

+11

030

534

_

28423

26422

1 l J

29870

I . 1 .. 1 * rr+ttfimSS*

266 J 3

+03

1391

025

957

285.95

28462

28329

22753

352.99

-03

1936

631

939

35024

3S7J2

T

20057

22 /US

1426

736

. 062

nee

H 442

22431

TTt

H 476

+13

1930

735

655

57075

57174

57222

36231

Mt

f i >^ t '! AnpAf'WrfiMBHlMni

Irfei

+07

3335

536

1 X 33

34 L 22

3 CJ 0

■ m'.i i , ii j/ B

EH

o~.o

iiiJ

I ..* J

» iJ

73934

FIXED INTEREST

r * «*
nmecs

-is

. t ■

If

Mm

Jknt

7.

Mj4.

ledqr-

xd a&
HB2
104*

OdOdi fiewretewt

m

■ .

"

i

fllJ

058

5M

2

50$ymt ..ftl-..,.

1H34

-MO

1M05

oil

3M

3

OnflSffiW— -

2HJ3

-4A

HMO

034

574

4

IntOwwdte

32SJ2

-

12012

■ —

650

5

OUI

-M4

HUS

BiJ

T

SSSSm

•137

+t»

wm

«•

D

6 SM

ESI

Eft

• toTtcW.flffire for Jane 7, -1982.

NEW HIGHS AND
LOWS FOR 1982

The W te Hiw quotation* In the Share
Information Service vesterder ettelned new
Highs end Laws lor 1882.-

NEW HIGHS (129)

MtmSH FUNDS CD

IWT. BX. & O' SEAS GOVT. SHG. ISS. CfJ
LOANS (4)

FOREIGN BONDS (2)

BANKS Cl)

BEERS O)

I BUILDINGS (Til
CHEMICALS (3)

DRAPERY & STORES C11)
ELECTRICALS fS)
ENGINEERING (7)

FOODS (SI
Hotels n>

INDUSTRIALS 1231
INSURANCE (41
MOTORS IAJ
NEWSPAPERS <2)

PROPERTY 'll)

SHIPPING (21
TEXTILES /SI
TRUSTS /»'

OIL A GAS XV

NEW LOWS (43>

AMERICANS (6>

Amax Cheie Mervhittan

Bankers N.Y. ColsBte-Pahnolfw* -

Bentflx Coro. Floor Corp-

loce

CANADIANS CZ)
Rfo A Isom

BANKS (3)

Bank ef Scotland .Smith St Avbvn
Deutsche Bank

BUILDINGS (41
Cement- Roadctone Gtouop

Crouch Group Leech [WnJ

STORES 111 .
Wilkinson Warburton

ELECTRICALS 13)

Mitel Coro. WlBtell (H.) -

Norsk Data

ENGINEERING <*>

British Northrop RHP

BrocJtfiouse RDblnron (Thoj.l

Hunt A Mowrop Tecalemft

HOTELS (1> '

Rowton Hotels

INDUSTRIALS (61.
Advance Services Duple Int.

Amale'd Metal &per»«*a > •

Brook St Bureau Umlevar N.V.

PROPERTY (II
Town A Cltv 7 PC Cntr.

Cum. Prel.

TRUSTS (31

Fulcrum Hamoton Tnm -

Stewart Eirt. Inv,

OIL A GAS (f)

Doable Eagle

TEAS a)

McLeod Ruccel
Do. 8.4 (k: Cnv. Pf.

MINES (4)

North Broken Hill Ayer Htttm

North Kalfluril Tronoh

OPTIONS

First Last Last For

Deal- Deal- Declare? Settle-

. logs logs tioo meat

May Jane 11 Sept 2 Sept 13
June 14 Jane 25 Sept 16 Sept 27
Jane 28 -July 9 SeptSO.OetU

For rate rntiAcations see end of
Share Information SerPiee

Stocks to attract money for
the call included J. Hepworth,
Electro Protective^, Lofs, UDS,
Black and Edgington, Clyde
Petroleum, ICL, Barker and
Dobson, First National 1 finance.
Central and Sheerwood, Imperial
Group. Padfie Copper, Premier

Consolidated, Town and City
and Ladbroke. Calls were
arrang ed in Glaxo, Fisong and
Imperial Gronp, ’while doable
jtions were transacted ixi
_lectro Protectlves, Town and
City and Premier Consolidated.

London Clearing Banks’ balances

as at May 19 1982

THE TABLES below provide the first monthly indication of the trends of bank lending and deposits, ahead of the more comprehensive
banking and money supply figures published later by the Bank of England. They are prepared by the London clearing banks and
cover the business of their offices and their subsidiaries (excluding Scottish and- -Northern Ireland banks) in England and Wales,
the Channel island* and the Isle of Man which are fisted by the Bank of England as falling within the' monetary sector.

TABLE 1.

AGGREGATE BALANCES

Tote l

outstanding -

Changa on
month

£m

LIABILITIES

£m

im

£m

Sterling deposits:

UK monetary sector

12JS57

+847

UK private sector -

46,624

+ 51

UK public sector

■ 935

+ 58

Overseas residents

6.028

+ 2

Certificates of deposit —

3^87

69,531
21,876 .

+ 79

of which: Sight

Time (Inc. CD’s) ...

47,655

Foreign currency deposits:

UK monetary sector

Other UK residents

Overseas residents

Certificates of deposit ....

Total deposits ...
Other liabilities*

12*41

3*84

30,198

4457

TOTAL LIABILITIES

ASSETS

Sterling

Cash and balances with Bank of

England

Market loans:

' Discocnt houses

Other UK monetary sector ...

Certificates of deposit

Local authorities

Other

50489

119,920

1^996

134^16

1,182

18411

+ 108
+930

-905

+ 132
-367

-235

— 53

+587

Total

outstanding
£m - £m

Changa ori
month

Bills: ’

Treasury bills 188

Other hills 1,184

Special deposits with Bank of

England

Investments:

British Government stocks ... 2,653

Other 2.600

Advances:

UK private sector 43,876

UK public sector 664

Overseas residents 3,497

Other sterling assets*

Foreign currencies
Market loans:

UK monetary sector 12,733

* Certificates of deposit 334

Other 21,649

Bills

Advances: “

UK private sector 3,064-

UK public sector. 495

Overseas residents 11,342

’ Other foreign currency assets*

TOTAL ASSETS ...

1,372

5,253

48,037

8^80

34,715

110

14.901

2,755

£m

+ 13
+127

- 13

- 12

-729
- 27
-116

+ 34
- 12
-188

Acceptances ...

Eligible liabilities

134,916

2£34

52,394

£m

+140

- 25

+517

-325

-873
+ 13

- 167

- 48

^235

- 17
+607

* Includes items in suspense and in transit.

TABLE 2. INDIVIDUAL GROUPS
OF BANKS’ BALANCES

LIABILITIES

Total deposits :

ASSETS

Cash aad balances with Bank of
• England

Market loans:

UK monetary sector

Other

Bills

British Government stocks

Advances

TOTAL

BARCLAYS

LLOYDS

MIDLAND

NATIONAL

WESTMINSTER

WILLIAMS &
GLYN’S

TABLE 3.

INDIVIDUAL GROUPS OF BANKS’

Out- "

Change

on

Out-'

Change

on

Out-

Change

on Out-

Change

on

Out-

Change

on

Out-

Chengs

Oft

standing

month

standing

month

standing

month standing

month

standing

month

standing

month

fin

£m

fin

■£m-

fin

fin

fin.

fin

fin-

fin

fin

fin

119,920

+132-

33#4G ~

—389

21,660 ■

+372 25,066

-291

36*120-

+525

3,229

f— 85

1,182

- 53

374

w. 2

233

+ 48

•232

*-19

304

78

40

4

26,784

+ 24

7,039

-574

4,698 '

+447

3*603

-233

10*973

+458

471

^ 74

26,142

-310

7^63

- 18

5,066

—464

5*455

- 37

- 7*403

+196

855

+ 13

1,482

+153

504

+ 8»

320

+ 77

321

-.61

.317

+ 67

21

*-* 20

2B53

- 13

836

+ 3

426

- 3

800

+ 12

539

•- 25

52

—

62338

+350

18,503 .

+110.

11*597

+176 J3J07

+ 66

17,085

+ 1

1*847

-J

52^94

+607

16,807.

+134

.9a62

+281 10,752.

+168

14^07

+ 86

3*466

82.

Companies

and Markets

CURRENCIES and MONEY

UNIT TRUST

Dollar in demand

THE POUND SPOT AND FORWARD

' Dollar demand increased
yesterday, encouraged by . the
firmness of Eurodollar interest
rates, and the growing conflict
in the Middle East following the
advance by Israel deep into the
Lebanon. The U-S. currency
opened Arm, and rose furt her in
the afternoon when U.S. centres
began trading-

sterling lost ground to the
dollar, but was firm overall
despite the cut in UK bank base
lending rates.

DOLLAR — Trade - weighted
Index (Bank of England) 116-6
against 115-9 on Monday, and
106.5 six months ago. Three*
month Treasury hills 12.14 per
cent (10.23 per cent six monuig
ago). Annual inflation 6.6 per
cent (6.8 Per ceot previous
month)— The dollar rose to
DM 2.4050 from DM 2.3820
against the D-mark: to FFr 634
from FFr 630 against the
French franc: to SwFr 2.0435
from SwFr 2.03 in terms of the
Swiss franc: and to Y246.90 from
Y245.75 against the Japanese
yen.

STERLING — Trade-weighted
index was unchanged at 90-9.
after standing at 91.1 at noon
and in The morning. It was 9L7
six months ago. Three-month
Interbank 12|£ per cent (14} per
cent six months ago). Animal
inflation 9.4 per cent (10.4 per
cent previous week) — The pound

In the afternoon the U.S.
currency continued to advance,
fi nis h ing at the day’s high of
DM 2.3985, after rising to
DM 2.3868 from DM 23850 at
the fixing: Eurodollar rates
declined from highs touched at
noon, but the U.S. unit probably
gained support from growing
instability in the Middle East,
and Chancellor Schmidt's recent
local election reverse. Sterling
rose to DM 4.2760 from
DM 43640 at the fixing , and the
Swiss franc to DM 1.1743 from
DM 1.16S4. The French franc
- also advanced as the D-mark
showed mixed changes against
its EMS partners.

FRENCH FRANC— EMS mem-
ber. (central position). Trade-
weighted index was unchanged
at 793 against 803 six months
ago. Tpree-nurailr interbank
161 per cent (15ft per cent six
months ago). Annual inflation
133 per cent (14J per cent
previous month) — Very high
short term Euro French franc
interest rates eased some of the
immediate pressure on the franc
yesterday. It gainid ground
against all the other members of
. the EMS at the Paris fixing ,
including the strong D-mark
which fell to FFr 2.6002 from
FFr 2.6046. The dollar fell to
DM 63075 from DM 63136. and
sterling to DM 11.1070 from
DM 11.1080. The only major
currency to advance against the

June 8 epmrf Close One month

U.S. ,1.7786-1 .7960 1.7*15-1.7825 OJMJleA
Canada 2J350-2255B 23420^2430 0.7&-Q.28C <fls
tiethlnd. 4.71*^4.75** A.72V4.734 2-1**: pro

Belgium 8MM1.10 • 80308030 16-26cdis !

Danmark 1430-14.B6 14£1VU32*s 6* 4 -7W» die

Ireland 1-2300-1.2330 1.2320- 1.2330 0.00-0. 73 p <Sm
W. Qer. 42M28 4J7V-U2JP, IVIVrf pm
Ponugal 12B.flQ-l30.16 129,16-129.68 gB 3Bc rirr -
Spain . 190.1 0-1S1 .10 190.20-190.40 E5-SOc di»

Italy 2357-2370 2301-2383 21VZ4*Jlrs dii

Norway 10.87-10.94 10.88-10.89 < 1V2 a «ore dfs

Italy 23S7-2S70 _

Norway 10.87-10.94 10-88-10.89 , 1 V2> 4 ofa dis -JL41 (LAib

H-2H r 2!-2»' 23 - 26c a*

VIVws die -OJB 2-27, die

5®-«3 _ 584-440*1 2_3S-2.16y pm - B.14 6.10-5 JO pr

Austria X.0&3QJS 304740.12 ISVIDgro P™ 4.68 34-Z7 pm

Switz. 3.61V3^8*i 3-63*-3-64>. 2V2Sc pm XB 6VA pm

Belgian rata (a for convert^ (a franca. Financial franc 87.95-88.06.
Six-month forward dollar 2.17-2-27C. die, 12-momh 3.52-3.72c dig.

' ■ 1„- % 1 Thraa %

One month pj. month* p.a.

0.234.33c da —128 1US-1.12cfle -ZAO
O.TMJflc (fix -4.44 2^0-2.fl0die -4£5
2r-1*ae pm . A 44 4*-4*i pm 3.70

16-26cd« . —3,12 75-B5d'a ' -3Jfi

firTtaedl . —5A4 18V19H dls -5 JO

O.0O-O.73p <Ss -6.47 1 27-2.1 Sdis -6.70
ivi*»p*pm 3J6 4V3*4pm 3.74

106-36Sc d'w - ' -22.72 34(Ha30<fl« -21.17
S5-80cdis —426 246-285 die -S.S7

21*i-24*illra die -11.68 66-70 dla -llil
1V2*«oredfs -221 64-7*1 die. -ZA8
2326c die -20-44 46-50 chs -1727
VIVora die -022 Z-2 7 , dix -020
225-2. 16y pm - 6.14 6.10-520 pm 5.46
13*>-10gro pm 4.68 34-27 pm 4,05
2V2*ic pm 8^ fivn pm 727

THE DOLLAR SPOT AND FORWARD

UKt 1.7785-1.7960 1.7815-1.7826 023-023C (fix
lrslandt 12460-1.4636 1.4615-1.4635 0.62-0226 pm
Canada 12560-12686 12680-125B5 026423c die
Neihlnd. 2.6400-2.6670 22540-22570 123-T336 pm
Belgium 4420-46 JS 4626-4628 4.7c die

% Throe %

pJL month* p.a.

-128 1.02-1.124 is -220
4.72 1.65-120 pm 425
—222 026-0.70dFa -2.16
6-24 4.02-3-92 pm 528
-IAS 16-20 rHa -129

Denmark 8.1070-8.1410 8.13004.1410 2-70-22Somxlw -4.17 5.66-0.1 5d is -220

W. Gar. 2.3765-22075 22045-22055 1.1B-1.l3pf pm 5.76 3.65-3.60 pm 6.03

Ponugal 72.00-73.00 ■ 7220-72.75 50- 200c dts -20.05 150-52Sds -1028

Spain 106.20-106.85 10620-106.85 20-2Sc dix -2-53 85-96 dix -328

Italy 1314-1328*1 . 1325-1326 ■ lOVIIVIra dix -1QJ9 30-32 tiis -928

B. 0970-6. 1210 6.1160-6.1210 OJOore pm-OJQdis 020pro-020dls —
6.1900-82500 62375-8-2425 12VW.C dix -2526 23-24VJI* -1527

Sweden 521002.9430 52380-52430 Q.50-020ore pm . . 021 .00-120 pm

in 24520-24726 24626-24626 1.66-1 28y pm 722 4204.70 pm 7.63

Iris 16.73-1 628V 7626V1S27 3 , OVBHgmpm 629 28-25 pm 629

ft. 2.0160-22480 22430-2.0440 122-1 .72c pm 1029 425-4^ pm 929

f UK and Ireland are quoted in U.S. currency. Forward premiums and
discounts apply to' the U.S. dollar and not to the. Individual currency.

CURRENCY MOVEMENTS . CURRENCY RATES

1063. ' • 1.

2981. » 8.774

FT LONDON INTERBANK FIXING (1 1.00 a.m. JUNE 8)

3 months u.S. dollars

6 months U2. dollars'

bid IfiBilB , offer 15 1/16 I bid 15 1/ IE offer 15 Si IB

The fixing rates era the arithmetic means, rounded to the nearest one-
slxteenth. of the bid and offered rates for S10m quoted by the market to five
reference banka at 11 am each working day. The banks are Motional Westminster
B«*. Bank of Tokyo, Deutsche Bank. Banque Nationals d* Pari* and Morgan
Guaranty Trust.

:URO-CURRENCY INTEREST RATES (Market closing Rates)

sterling Dol

ion term

7 day's notice

onth

iree months

x months

ne Year

13?a-l3

lSlg-13

12H-12&

12*}-1ZW

I2be-12*4

1278-13

13^-14

14-141a

14A-14K

W« 151fi
147 S .25 Is

Dutch

Guilder

8wIbs

Franc

858-878
86s 87 8

81,-9

9rHh*

6-6*8

Mi*

4ia-4«a

6-5ig

2&-5*k

19-81

83- 25

84- 85
8418-85

84-251* ] 24l«24i 4
2 Uj -221* 24-2458

14-15*8 1434-15
1518-16*8 1478-18

. 16-17 ' 1474-15

1614-17*4 14*4-1478

1634-16*4 1458.1434

SDR linked deposits: one-month f4*j-t4 7 « per cent: three months 13 Vi 4** per cent: six months 13V13 7 * per cent: one year 13V-13V per cent.

ECU linked deposits: one-month 16V-16*V par cent: three months 15V1S*> per cent: six months 14*1.-14**% per cent; one year 13*V-14V par cent-
Aslan S (closing rates In Singapore): one. month 14V 1<V per cent: three months 14V15 per cent: six -months 14*V-15V per cent; noe year 14*«-15 per
nu. Long-rarm Eurodollar two years 15-15^ per cent; three years 15-15V per cent: four years 15V 15*, par cent; five years 15*.-15*» per cent: nominal closing
tes. Short-term rates are coll tor U.S. dollars. Canadian dollars and Japanese yen; others two days* notice.

The following rates were quoted lor London dollar certificates of deposit: one-month 14.10-1420 par cent; three months 14.45-14.55 per cent; six months
-.45-14.55 per cent; one year 14.50-14.00 per cent.

HONEY MARKETS

Bank base rates cut to 124%

K clearing bank base lending
rate 121 per cent (since
Jane 8)

Clearing bank base rates were
it to 121 per cent yesterday
ywn from 13 per cent while
sposit rates for seven days fell
9} per cent from 10-101 per
.nt. Yesterday's cut followed a
lwnward trend in UK interest
tes recently, culminating in a
Auction in Bank of England
sal Log rates on Monday, as the
arket looked beyond a military
ttlement to the current Falk-
ad Islands crisis and focused
. recent encouraging economic
dicators. Short term interest
tes were correspondingly lower
.sterday and the Bank of
igland reduced its money
arket intervention rates for the
cond day running.

The Bank cut half a point off
nd 1 dealing rales to 12g per
nt and a further g from hand
to 12J-12ft per cent Band 3

MEY RATES

iW YORK

rates were cut another quarter-
point to 123 per cent and band 4
the same amount to 121 per cent
All bands have, now been cut By
half a point since last Friday
with the exception of band 3
which has fallen by j of a point
Elsewhere three-month interbank
fell to 12M-122 per cent from
12|-133 per cent and three-month
sterling CDs were lower at 12ft-
12 A per cent compared with 122-
121 per cent

The Bank of England forecast
a shortage of £200m in the
money market with factors
affecting the market including
bills maturing. in official bands
£H5m, Exchequer transactions
£50m and bankers balances below
target £130m. On the other hand
there was a fall in the note circu-
lation of £130m. The Bank gave
assistance of £23 1m in the morn-
ing by purchasing - £12m of
eligible bank bills in band 1 (up
to 14 days) at 121 per cent and
£15Sm in band 2 (15-33 days) at

LONDON MONEY RATES

12 4- 12ft per cent In band 3 (34-
63 days) it bought £L0m at 12i
per cent and In band 4 <64-84
days) £24m : at 1 2} per cent It
also bought £17m of local
authority bills in band 4 (64-91
days) at 12i per cent
of around £250m. before taking

During the afternoon the fore-
cast was revised to a shortage
of around. £250 m, before taksng
into account the morning’s
operations, and the Bank gave
additional help of £20m, making
a grand total of S251m. The
afternoon help comprised pur-
chases of £10m of local authority
bills in band 4 at I2i per cent
and £10m of eligible bank bills
at 121 per cent Discount houses
were paying between 12 per cent
and I2i per cent for secured call
loans while* overnight interbank
money opened at 13^-138 per
cent before slipping to Hi per
cent Closing balances were
taken at 15 per cent however-

EUROCURRENCIES

Eurodollars

firmer

Euro-dollar ' rates were
generally firmer yesterday, re-
flecting concern over increased
tension in the Middle East as
fighting between Israel and
Syria intensified. Euro-sterling
rates were a little easier follow-
ing a half point cut in clearing
bank base rates and the dollar’s
performance in forward trading
reflected this widening of dif-
ferentials, being quoted with an
increased discount against the
pound.

French interest rates
registered a further rise and the
franc showed a wider discount
against the dollar In the
forward market as ..the
authorities sought to underpin
the franc by malting it very ex-
pensive to run short of the
French currency, with short-
term rates quoted as high as
SO per cent Belgian rates were
a little easier and the Belgian
franc showed an improvement
in forward trading,

me rate

i lunda (lunch- lime)
aaur bills (13- week 1
•esury .bill* (26-weefc)

SRMANY

nband

frniqM rata

# month

•ea months

months

“tvennon rate

•might rate

B month

•ee months

months

16-16*,

1SV13*

12-M

12.16

I Starling :
[Certificate !
1 of deposit |

i Local | Local Auth-1
Interbank: Authority inegotlablc 1
' deposits j bond* [

Finance 'Discount I Eligible

House Company Market (Treasury Bank
Deposits Deposits I Deposits Bmee Bills «

Overnight— ......

2 days notice.-

7 days or

7 days notice...

One month

Two months....
Three months.

. Six months.

Nine months...

One year

Two years- —

18-12la —

I 1278-1234
; 123«-12Ss
i 18H-18&

! ififilt

i 184i-18*

13-13Ba

1Z7 B -I3l8

i2»-ia

18 ft- 12 70
18fi-18»

U»-1BM

1348-13

13 14-127 B
13*8-18
1210-1 is*

13-1238

1278-18*8

— 13.14-15*8

187, 13 u

187a 13*8

1278 13 ,

12*8 .— - ;

127a — 1

1278 —

4B<4 : US* I 13* 12-&-12*

13*b 18*4 .18A-12M 12g-12«e

13 [ 12 -ia*-12* 12*

- 11178-lltg

_ f —

•count rat* -

J (uhconrflrianel) ..... .
discount (tiiree-montfi).

Local authorities and finance houses seven days notice, others seven days fixed. Long-tann local authority mortgage
rales, nominally three years 13*. par cent: four years 13*, per cent; five yean 13*, per cent. •? Bank bill raws in table
ere buying raws lor prime paper. Buying rales- for four-month bank bills 12V12*jt per cent; lour months trade bills
121, per cent.

Approximate selling rates for one month Treasury bills 12?»-1Z>x per cent: two months IZV-IZ 1 * pet cant: three
months 12*33-12*. gar cant. Approximate sailing ran for one month bank bills per cone two months 12fe per

cent and three months 1Z*»-12*n per cant; one month trade bills 13 par cent; two months 12*. per cent; three months
12V per cen*.

Finance Houses Seas Rates (published by the Finance Houses. Association) 14 per ant from June 1 1982. London
end Scottish clearing Bank Rates lor lending 1ZS per cent. London Coring Bank Deposit Rotes lor aums at seven
days* nonce 9*a per cent. Treasury Bills: Average tender rates of discount 12.6875 per cent.

Certificates of Tax Deposit (5ariss 5) 13 per cant from June B. Deposits withdrawn for cash 10*2 per cent.

PS'fi'tf

; Financial luces;- Wednesday '

m

INCOME INVESTORS

Four attractive ideas
from Fidelity

FT SHARE INFORMATION SERVICE

FOOD, .G-RQCER1 ES-^Odit^.
.V; m* v : : | ; m». I 4 -"! E jcifSI

Find oat more — nag 01-283 741 1

day. or night

LOAN S — Continued

Ww |+«r VhU
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A RE \OU TAKING
ADSANTAGECF
THE NEWCOMMOMTY
MARKETS?

£23*2

88
225
368
63
34
182
1IW
146
100
172
162
338

no

S

iS

Uni
63
207
495

Natl B/kx 5Qd 1 175
Phoenix Timber! 72 !

SO
344

U A

75 360
3.4

m 2g

its 590

_ 152

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B |

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6.7 72

1 119
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16
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26
81
300
198

liT.-i

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42
99
325
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433'

205
111
785

65 [42
*M 48
63 ]22

Merrill Lynch (Brokers* Dealers) Ltd,
invite investors with 550,000 or more available
for sped fie commodity invest raent. to attend an
evening seminar at the Grosvenor House Hotel,
on Tuesday 29th June. J

-OPENED nt A»t> n M

The varied seminar programme includes:

★ Whether commodity investment hf II IM

suitable for you. If /■

★ How to speculate professionally in ZBeSSM

commodities. IB

★ Commodities as analter native economic
investment.

★ Current opportunities for speculating in gold.

★ Wow to maximise your returns in hedging your
fixed-income portfolio, through the Financial Futures markets.

Informal discussion will follow.

Why not arrange your place now, Voar invitatioofa available on request.

and get ail the worldwide Call Ramiro Penaherrera, Managing

resources and expertise ofihe Director on 01-628 7000, anytime

Merrill Lynch group of companies between 9.00 am and 6.00 pm.

working roryou. fig Ifemll LyBCll

Merrill Lvnch House. Im Pierce F-w S Smith

530
535
190

41
5fad
40
28

170
52

42 ,

,9*4 56

170 +4 [367

57 - 1

39
152
95
2S3
124

96) 63
72 185

- 960

— 54
_ U5

• S’

6.7 27

£3 3

» Si

23 335
95 305

8.7
52

13-7

F3t?

rm

MemclOg.

M«wCon».«

E

Why not arrange your place now,
and get ail the worldwide
resources and expertise ofihe
Merrill Lynch group of companies
working for vou.

Merrill Lynch House,

27 Finsbury Square, London EC2A 1AQ. (Brokers & Dealers) Ltd.,

is

T"|

EH

nri

5?

ii

u

31

rtf

Tr

SlF

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128

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37.9 ®

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! aFM"

!■■* l£ Ns

Financial Times Wednesday June 9 1982

MS

ifMI

% ;*■&* y

i § :•• *s Ji £

141 ^ WaS «2 Pit:

INDUSTRIALS — Continued

UMSWHk

? C >E

i l E tiftl*

!*r a s #*

2h? > * a i{ laa isj

» U» MhefLIHtt HO 1+2 4H&
« 3J ‘fcria*&tten. 34 _..,. Oo
2» B7 JohntonOnn... 245 ' +1 7J.

2W/ 245 Jotew«ttw,£l ZJZ «

j s ttsfe-«:=v

1 S BalfesW^A

f f ta»S9 -v

M » LX.P. HWs__ 59 ...... 43

s* bsj^S: i-aa

toi . . ho

nr fir's |«E JO* CM

23|5#M 43 33
- « - 18 14%

23 45 133 42 22

2J 31 0|« 48' 32
UZUflS 146 107
09 83 a? ZU 139
ll 7i afi KL 95.
42 4£ 7.4 31. 22
Oi 153 OKU 159 112
07 17.9 K5 133 Uh-

08111 S 3 125 91

U M S3 67 58

- t - 238 MO

LEISURE— Continued

| s*c* | mc |*-*1 ft In

« * \i?i mi *» g* Lead tods. 50p. 167 +1 $66 . li flj OH 42 33

«6 l cifUg 3£ & LHGrowlffi 373 MS 21 42 17 74 65

*7 : • oSiqf S &- ten*™*-* Sri—- 28 34

Stock Me |*-1 ft-

tt Boots lOp 38 410 — 3.81 -

6my5g.. 25 - ^ - JL3J

iSmit 2 && To wj> xs

Mon/Vtg.- 235 +3 1100 2-7 10* 4.9
208 +3 hlO 5J 2.1 13J

235 +1 b28 5.7 3.0 7.1

26 407 il 3.9 20.7

342 +4 tlD.07 17 10J 72J

117 h50 21 6J 87

99* ...... 8.75 15 133 7.0

59 3.7 24 91 63

285 ...... _ — — _

48 ...... dL0 — 30 —

PROPERTY— Continued

,r m umswhu

INVESTMENT* TRUSTS-Cont OIL AND GAS— Continued

= l uM if

% • 8k. Lang Hmbty. lap, . 4 """ fr- —

* - 36- Longfon hafe/L 34 ... 10 _

tS- g . 66 — fLO 0.9

S i Mj"s MS. »•- Ld»4Bmw50o 98 7J1 16)102874)

* » #% 22% U.Y.Dart-lS?! 22 % .V.” L3J — 8#_

2 !., jrf jj J iM *?i SSSftSr JS :l a 13 ffis

J : p 1 3 2* -1 L S i! Si

j'l-sssa 8 =■»■ “a?

- 50 36

M U 23

(IA) 51 31

— 100 62

74 210 92

U* 27% 19
PW 93 69

258 +3 88.77 _ 7.9 -
87 +1 74 34 113 32

S%l""t«Z. ” ii I'

m “Z <76 21 as rb

190 ' “ _

19% +%“ hdOSl 25 3.712a
79 +2 275 3.1 5X 9.2

98 j 78
370
154

37%

158
9
63
164
230
170
144

S'

160
156
285
238
111
92 179

114 I 97
£265

|Mutofaw(A&J.)| S3 -1
fee Canfe* & 355
tet6Brt.Pw.ll34 .....

X — %rnm

132 .....

Th *h

48 +f
136 ....:

218

1SU *2
127 +1
10 .....

62 ;

145 .....
144 +1
»5 42
216 +2

S- :r;

UOb +1
£218 +8
Dd. 8% Cm. 91441 EUJ2 +3

138 4-1
133 J......

515 h3

t358 1 17

05 14

1&0 19

3J 4

$U 2J

12J2 24

t!2 24

Z1 127
425 25

f«3 28

y

1982 I

: Mto iMf sw

146 1129 Equity Const £1..
229 210 Do. Defd50p_
303 275 Equity tic. 50p_.

81 71 EsuteDnttK

Wj 15>* F.*C.Ent.Ta.lOp
54 51 F.&C.Eurotnst.

11* 102 Family iiw.ta...
Uh -o rntCtartttted.
>135 118 FVs) ion. Ain.„
TWarSBt* Ftedgoiinq )iws._
246 197 Flenitiq American.

136 -2 t9.45

219 ims

300 +2 16.75
72 23

if ^

114 ..... 60

& = at

& ± vs*

122 99 FlmmFaiEastenL] ‘ 138 ..... EU -

Finning Japanese ‘ 183 FITS

Do. 182 —

Ftemng Unmnsl _ 1544 6.0

Foreign & Co) 64 ZOf

1 621* 53 Fiemtng Merc... .

. 190 151 Fleming Japanese
1186 144 Do.“«"Z_

1 172 138 Ftenaq Un im sal .

68^ 57 Foreign & Co)

117 85 F.UJLI.T.CRQJ25).

461* 43 Rutcrum Inc

4A, 3 Do . Cap. 2is>_

411* 37 Fmxfcmest inc

134 108 Do. Cap

, 80 67 2T.GMBriRK.Sl

1982

Mgb la.

11* I 80
295
233
*183

97
120

56
88
£12h

98
155
278
*140
120
20

ck | Me ft |r»|K|wE |

fcLaJwo ..... I

*“■ m -i 2.75 27 22 lifl i

96* ..... 3.4 * 5.1 * !

H — _ _ _

53 03 0.6 08 —

' 88 ■ ... 0.75 81 12 U J

Oft +>a 045% 6 185 6
43 -2 — — — —

325 .....

225 • — — — -

118 -8 055 26 0.7 - i

576 273 G.T. Japan .

265 190 Gen. & conn'd.. 260 +5 493!

126 1S6 Gen. Consoidtd. .. 123 . — 6.4

306 265 General Funds 284 8J»

285 2SA Do. Com. lOp— 270 ...^. —

93 82 Gen. Investors 88 k +1 *33

68 56 Gen. Scottish 64 +1 21

178 148 GM-Sttridn 12^ 15M 4.0

87 71 Glasgow SmdrT 82 +1 235

149 ) *|l35 |€lo»liw 1 W, 7$

For Great Northern tm. see RtT S Norther
138 IUD Greephv* 7sL J. 225. + 2 4.0

194-172 Greenfriar imr 180 23

210 152 Gresham Mse 152 SMS

93ij 80 Gresham 'm 93 133

110 91 Group Investors.- 105 31

Far Guardian Tits tee Flemtag far East

93 84 Ntimbros 86S 3-3

145 120 HilltPhHip) I MU 6.95

156 126 Independent I nv. . I 1 » 4 0$

292 240 InvTiP Success—) 254 +2 5.04

SHK1.1 67

£nJ 104 bus

iPf,75p| 95 ..... m
40 +1 6083

dr* a "V
■5, ~ IS?] u

g ..... *U7|*>
400 6.o~

293 18,0

390 ..... 120
£19*b 03591

w *^ 4c * pi s a§

24>« .::l to_5
S3 g45L

SHIPPING

468 B20 Brit & Comm... 468 +23 bl3-5

270 185 Cawsfl Bros. 50p 19M ±5.0

168 138 Fisher (J) 163 *1 Sb5

280- 210 GatsKJLaneflSL 2M —

120 93 Hurting Gison. 1 SO* +2 MO

41 33 lacsbsU.l.)20n 41 d23

63 3a LuiffSeasFim 42 -1 L07

322 222 Ue Siwrittg... 222 10JD

22 12k Mersey Dk. Units. 16 ..... —

158 11B IflKardOodsa 125 05

130 105 Ocean Transport- 128 +3 9.0

153 124 P. &atSS£l.. 150 +1 1D.0

150 100 Reaniaa Sn.SOp U2 *2 US

235 83 DO.-A-5QJ— 8S +2 1.75

107 94 Ruoaman?w.). 102* + 2 75

a4U iia >2 SnCmatoH32ip_ EUU Q30c

' .85 .«.> 1

SIS ter^Bn. f u I2SS M0T0RS ^ aircraft TRADES

£ Slwai** » . Z* 14 101 3A ,a.j. — J rwr~.

85 :*a»i ' • S 4 i

038 001

5 ^ . iS^Silh 188-168 :

? i-j ;?JV no 332

; il ' I s ? Tdg* 234 t09 '

■ 2: • jJ iJii 21 15la

1 1 m « =n ? 6 « , e , ^ :c ^ 5

038 OOl MattesonsT^pc. £138 Q7\% 23! {5.7 ~

10 -168 BtoytBTdS— !_ 168 Z.. 9^ 27 8J K2)

190 132 MetatBoxO^ 164 -2 H 55 gL2 1DJ 012]

134 109 Metal dosw«a. 134 fl sf aUH

ZL 15>a MetaMCJeaUqs ; 161* $L3 03 * —

( 2 g -rJ.rifm g 6: l DSferz “ zz z

| fecL» i.si m feilSi- ■ Commercial Vehicles

?ft9 “Sn'sa ;<• m US 12tol tF I «T 50 I 38 ItRF.WfcteJ.f 47 -j as -

« J4 . :6 J* 61 44 Moa(RoSSlfti' tt ZZ U I u I W 124 h*»«iins(Gft- 142 ..... 83 23 *3 60

i 197 i*?s m St S nSwSiz? « :r « Lui Is » I * ^^ 4.1 u 1—1 b- 1-1-1-

! 5 ■. ft f ■ ^ Ufieas *8 ii- » • “ ■= Components

& 1 1 sa^ s 3 ja. a h& tt£==Bda-iaifi&iflaa

1 ? . — — — — —

123 +4 Qia — 5.4 —

23U 4— — — —

163 +2 030% * 0.7 *

27 ...... 07. 41 3.7 74

03% M| 62| U

« : -s .52 iMs

£41 £35% R.CJ1 45693)98 £40 Q4% * QU — „ / '

*36 11 lieli&Sp’KetiOp 14 +1 ~ — Components .

41 23 New Equip lflfL 41 +2 LOS 5.4 3.7 7JZ 54% 144 U-gL ; 47Ua) ■+! +L4 5^42(48

47 30 NnHno - 45 -2 40.6 04 iOM Vfl 133 Menssace Ena, 160 +2 bd75 L7 68 1U

Z2 ?} 71 S5 id SSSKh!: 72 ..... <£L0S ts 11 Z 7

■ 33 + 2 % 214 - 78 — 24 13 Airflow Stream 23- 0.25 ♦ U. *

125 UO tokwPodGrp_ HO . — d05 2A 04 6.9 37 23 AmKfng Eq. Hfc 23 ..... 4dL5 — t —

360 285 Office 4 Beet. 355 75 33 30342 58 49 (AutomotN* 58 30 - 8i| —

35 12 (Oveodnie 12%c. 13 CBc *

£71%£62%Ora)ldFte.Cv._ £731 2 . Off

46 * 39 ft, H. Industrials. 45 ...... b35

348 115 PartcerKnoO'A’. 146 75

08 184 Paub&WMtes. 217 +3 65

13% 11% Reeic. Holdings. 13

97 86 Peerless 93 65

_74 66 PmaandlOp.„ 72 L96

28 in Bhiemel Bros—f 22

- 02i — 141 113 Duwty5Di 141 +5 1WJ3 34 3.« 95

UIU 7.1 77 63 DwdoeMp 70 rl 4D - M —

12 73 65 310 237 FBgtt RefueWng. 310 +2 175 16 1^195

19 43 66 28 19 Hrmn-Sirttfa Ufa. 29* 05 121 38j 30

— -59 <3 toAfttMpW- 48 136 12 4.1) ®.«

U 9.7 19.8) 236 184 Lac*sli^£l„ 192 +2 110 16 8_fOT3)

41 3.9 74 43 35 Soter{UIOA50p 42 -1. 01 - 0^ -

. . , , , 48 36% 5i4>a Snap lOp 36* +1 6182 15 6 9^130

23 B-~ — — — 42 30 Wbodtea7(jT. 33+1 01 - 0.4^ —

” 3fl55|6J -

td Distributors

103 ...'... 413 L9j 5.7|OT^

31* jZ 61 z 15 -
75-1 5D 65 9.5 ftU)
14 +1 01 - 10 —

138 \&D 16) 7.9 14

97 115 19 5.2141

115 -3 45 — 5.7 —

35 +% t06 05 65 [795

S3 +1 $45 25 6.9 04

30 ..... B . — — — —

59 -1 25 4 6 .1 4 I

25 : “ 05 32 09

77 31 4 55 4

86ai 5.9 4 9.8 4

89 -3 6.0 - 94 -

58 d2.98 - 85 -

24 *25 — * -

58 +1 35 26 06(55)

130 +5 75 23 7.7 M)

47 355 2 A 11.7 45

U%

8# — — — —

96 +1 175 ZS 55 85

39 +1 145 — Sl-

tS 125 245 19 24

58

24+1 - —

m 17 10 PMMll

; 2 | r i‘ rn 66 Petroowl^ap. 69 25 35j 5JZt 61

■; . J7 tti 29 23 Phlifipt PaienSl 28 10 — 51 —

?al>jc - lullUf 45 430 Photo- Me 50p.. 454 9.4S 55 3.0 72 _

300 225 PUdnutOB BM 1 248 +11 105 32 65 5J ^

J ? ’’ (j ® ^ W KteiC'. Hht zz S* 11 ill CM ft g

1 f2 = ! 5 lljj- 59 PoSSwk&: 59p Z- ^ 15 9.0 (92) g g

£ - ;is 5 i§ % Er£g + 1 -US 5 % nJs 1 1

• i* 111 56 Rw|WtL)&P.^ 57a +1 g3J8 4 RC > tin

j-’ Jr? IB 124 Prestige Group. 178 ..._ 658 25 55 U ^ ^

JJ? 77 Prtfchvd&K.. 87% -1 25 U UM S .2

-i: S ® R-F.D. GrraplOp 53 ..... 25 14 75 &3l ^ ”

54 T 2 SO RadtamMeU). 5D 3.0 18 86 95 f? 2

•'3 .M 200 199 Rank Ora. 163 ..... 105 18 93(70 “ 5

Ti - 4 1 12' 322 M RedcBt&Cobmn 302 +6 95 26 <5 95 I* £

5 153 114% Redfeam Glass. MW 8-28 07 03 (85) **% S

-3J 27 ReedEwclOp. 31-1 01 ‘ _l 0.4 - ® ®

1 - 5 * 330 240 Reed Inti. fXL 326 +4 14.0 g35 6 J 4.9 J 3 77

Ji :vi 93% 82% RdjwPBWS. 84 k +% M.3S 21 76 02 ^ S

L-l lti= 193 159 Renown Ik. Y50 164 -4 Q25% — 17 - ^ ®

:: 86 . 83 Renvrick Group. 95 +2 ^2 24

3 . 5 , ■ ^ 76 feanw.._Z 58 -2 55 Z7 8.2 05

23 17 Rexmore 21 +1 110 - 6i — ^ ”

u : ,Lt> 505 424: Ricardo^; — „ 495 -5 85 35 25173 “ S

*-,T.; 17 18 RocfcDBrhM lOp 34+2 g “

52 52 Rodomra 79 21 22 3i (HO ®

+ - fei *. 43 Hkffe&ltataalQp. 54 15 Z7 4J1M S

■ '»« 185 no- Ropner 142. +2 6453 4.E 4.4 72 f 6 *

183 95 Do.'A’. — 132 +2.805 45 4.7 7J ” «

.i-“ e E 14 7 RDUprtat2flb„ 18-2 01 - L4 - «

7 i 26 39 Rowan* BBdea » 05 - 36 - 27 23

'H* M5 UO Royal Wares.—. 190 — 86 22 65 81 .

5t «

-? ;l= 5 iS

‘ v •! .. 5 *?

82 52

55. 43

. “C 14 7

-9 26 19

..! 'JJk 195 UO

- ' i ; M7 132

r: - i 37 32%

-i 142 86

.■ U? 225 1M-

At w? ,75 , 44

. 54 '*

U? B8-

S.:? 9f

£&fc 3 ?* -

Utos) Rtc.0 ^ Z0.75

SI +5 +935
Comokttd. _. 123 . — 6.4

nl Fuods 284 85

Coav. lOp— 270 —

liwestors— 88* +1 103
Scottish 64 +1 31

JJnf emu! in nut t

DAIWA

fi SECURITIES

■Vi;. -

26 17% Japan Assets ^p-

151 106 ladineSec. H^B.
158 137, Jersey Gen. 0.-

79 72 JkHoM trips

441* 40 Jove Imr. Inc. lOp

64 4% Do.Cap.2p

141* U Kf*p IwtsaiEoe 5c —
224 192 Keystone Imr. SOp
158 132 Lake View Imr. — .
75 69 L^nc. & Lon. Irw..

S3 71 LawDeberOue —

in +1 3.15

3S “ffiB

73 .^... 343
41% 45

13* '.T.!! 0^

20U +1 tlOO 1

137 ...... 435 1

71 288

SO ...... M.D

35 -2

53 t083 — 22 -

172 015 - 01 —

130 - —

z z z

80 — —

100 - -

108 : — —

83 : — —

580 -20 - -

110 +3 — —

no LO Ml

14+2 — —

194* 75 4.4

22 — —

198 +2 188 U
£83 -1 08% 12.6

140 .5 _

116 +2 QL5c 44

260 6175 23

88 +1 55 05

48 -1 b3.75 17

£525 Q52D8 —

£530 - —

330 +2 1O0 7.1

£103 814% 1L8

MINES— Continued

Central African

2982 I • (+ «H Ha (JJ?

S* Law I Sta* Me f- j M CWffirt

120 I 75 [Falcon Rh50c 90 t£gs BMW

33 20 lUfanide Col. ZU . 20 — Q3e 12U2J

0 15 Paa.Cpr5B0O24. 15 — — I —

Moray Firth

58 +1
317* +1 '

SHOES AND LEATHER

H | 116 72

Is

27 12

SI 34
119 105
98 75

134 110

s %

ss

» 2 £

•» 73

80 65

84 76

55 45

79 49

53 42

65 44

291* IS
60 45

133 102

66 45

185 114
0.4 850
437 317
68 48

630 150
875 640
230 200
2 32 165
900 570
375 110

73 -1 <654 15] 9.91 7.7

82 6.4 13 112 [9.0)

52 ^.... 25 25 7J 75

79 475 2.6 95 57

45 3.78 15 12.7 65

65 4.0 23 9J 5L9

n%+% gj8 11 Jim

122 35 ♦ 42 *

66 42 uj ujou

“1^11“ »'Bt SSSftSf * :::::: >S
u-l-W-lj » r i_ s

121 |U4 Lon. & Gart. 50p . 117 +1 15

For London & Hofyrood see Fleming Un i v c ts
48% 40% Lon. & Lenrmr~_ 20

111 96 Lotl & Lomond 107 40

149 93 Lon. A Montrose . M9 +—

1 178 Z32 Lon.&Prw. 17M -

1113 102 tort Prudential ... 313 S3

1 77 70 LoaOS'dyde 77 22

I 80% 71 London Trust 72d 375

! 94 84 Lowland Inv 94 1435

1238 210 M&GfeJlK.lfe. 238ri +2 2U5
1265 222 Do. Cap 10p3. 265 +2 -

97 82 Da MOtaUacK^ 94ri 738

, 51 40 Do.Cap.4o 46 +1 —

88 S3 Man&IMnp Ini.. 87%# 720

n8 I 60

1D5 50

205 • 65
44 1 30
ltr5
56
422
£ 20 %

130
162

5% . — —
123 +5 —

62 -4 G2%c

Mtf :::::: +di.7i

3Z 10

-% 90MX
T33 -2 25

205 —

sFi =

4

ZOO -5

60

70

.. .83 [MarLAMetrap Im. .

93 ) 89 ^*Aa..SLTsL£l. 7/S

80 ( 69 iMetdramlrw. | 75 I. 1 3.4

For Mercantile Inv. sec Fleming Merc.

8^8 Z20

75 3AS

SOUTH AFRICANS

1531 30
104 31
115 38
124 33

104 7
120 21
10.1 f
78 14
112 U

M(A.)10p J 143 tfcL25 6.6 12 133

mlJPmmB T< «|S NEWSPAPERS, PUBLISHERS

I0p- %|+2'|289

tfsGfp._ 42
i &roop — 139

utm j
- il

133 [Afl led Textile _
[54 AtJcins Bros. ™_
35 Beales (JJ20P-
'71 SfcfananAICp..
45 Brit Mohair — _
38 Bvimer L'ndZOp.
19 Carpets I nt5(b.J
11 Carr’gtnVlyeOa
“ SPatons—

37% 30 Scot. Heritable. 36%+%

72 0% Sears Hldgs. 68 +%

353 121 SecuricorGp.^. 330 +5
HI 117 Do. ‘A’ N-V — 120 +3

30 24

20 18

*8

95 77

■17 10

100 0 %

36 24

■sassfc: f feUBi

5tarnq.Wlm20p 6? «J3

SS3.S

eGorbu-
itnigbtlOp.
thane 18p_

s ,--?a e

I -a 9

SL II SS h

^ 3 ”i- i'

aari»-E 3 «

10 l-l 711-

S^g

Zn 88

EM U2

if J g
93 g
— - 200

- ,n ;
» 1?%

: J.fc: io?5

145* b4J7

215 -3 10.4

85 5.78

108 38

108 ...... 539

223 tno

245 75

1 83 75

5(b. 428 +1 300
I* 98 +4 35

,“5 3 — 15“
138 s!5

128 ._... d8.0

55 .J- 5.0

80 062.9%

m srW

147 102

95 t63

357 +936

»0 +20 M

445 8.0

IK -2 123
44 25

er Gears- 16

^-•ar

a aiis*

. . U- 2BZ13 93 DiJfcOvMMa .93tf ._.. 10% - Ili4|-
102 1 92 StagFornttlW- .94- 58 13 7 JKSL2

: :: V S BUftK f - 1 H-

PAPER, PRINTING
ADVERTISING

-2 55 28

1*3 210 180

!*'■ 187 161

i !: AO 33

■i-. 36 30

}• 333 110

- -T-j

28% 10 ttA.UX30p — 28%
79 43 [Asssc. Paper — 74

35 28 |Ault&W&g_ 35

U Can’gtn Viyeim
58 Coab Patons_
32% Corah

73 Duwianfafc
£67% Do. 7% Deb 82/7
20 Crowtf»(JJ-

115 Dawson lntL__
102 Dixnn{DavidJ_

19 E*K*mHfV4-
23 Foster (John) _
38 S*MB1 bm%.

72 tiESLT*-^

H

18 logram (ii!)10p-
54 Jerome (Bugs.),

69 Leeds Grp

28 Lister

40 Have (Robert H.)

S S5M&:

23 Martin (A.T20p

75 M9ler(F.)lflO.
40 Montfort

20 MumaaBroslOp.
125 Notts. Manta —

74 Nen Jersey 20p-
37 Parkland ‘A 1 —

24 Reliance Kart 20p
15 RMordslDp —
62 S.E.E.T 2C9)—
19% Scott Robertson
15% Setters InLlOi.
13 Saw A liww# lZp.
11 Shaw Carpets 3Ai-

TEXTILES

extile— 288 -2 I
n»- — 74 +1

JJ20P- 43 2

[A2Gp.. 72 ..... J
hair — 48% +1
n>a.20p. 40 +2 3

^

m ■■fcfflt rasr? n s iers : %

99 I 59 SwneMHHWs— 1 68
05 I 97 SuflOdN Sent fib lM5

H5 97
43 27

00% 912
123 85

197 175
6 4

HB1. . 36 048c -10i- 41 24 Brit Printing- 36

0®*p 36 -^-U5- M 65 04 108 87 Bnraing Gro.-

112 -- «J» 4.4 7.7 34 88 . 69 Da ReutcVtg. 76

Ite- 68 jB: 02 j - 3B8 154 Bun) 168

1 <-Wp W 338 * 43 4 35 29. CamuatfSirj.) 3»

peak. 2? ...... ~ — — — 175 147 3m*»tafc.5Dp_ 175

187 1 87 JTSLTVmalS!
8 I 5' hTiTiOMsVn.

ISerr-iOp M5 —.138 4 4.6 4 3 5

He Speak. 29 — — — — 175

UtaSt SO. 00 -% 014% 4 65 # 82
Pac.A60c 108% +% 076c 21 71 6.8 ffl

« 1W 094 15 68 (132| 28

xEp— — - r. - “ 1«

40 37

152 105
169 131

”, p.J 7 i 3 LB

65ffl4 108 87 BiuningGro.- 182- .,...458
7.7 3i 88. 69 Da Retried 76 438

i — IBS 154 Bund 1*8 +1 0-0

46 4 35 29. CauUortfSir J.) 30M 213

— — 175 147 »gn»UL5Qp_ 175 MS

6 3 4 82 40 CMML 75 LO

69 50 CkmblUo Group = -- «5»l

6J(IU| 26 17 CradleylOp — 26 ..... dO&3

- - 145 133 Cropper (James). 1C -... 25

L3 0M 19 U Detyn Pack 20p 19 -±

50 SmaU&Tidmas
16 SmtstewOUp.
25 So. Visasa LlSo
20 Spencer(6eoJ.
48 sfirtnaGro-ZOp.
13 Stutttmi 'A’.—,
39 StnwdfBfeyDr-d:
3 Sumner(F-) —
14% StabearaWMsey
70 Text’rd Jny. lCp
58 TtmkHBons —

bird MUe Irw. . } 39 158 L 1

NT ASL50 . — 1 116*/..-.- 022c 3-
IUlegT.2Cb- 138 +3 84) L<

91 60

;.!• 169 131 TTUlngT. 2Gb— 138 +3 84)

72 58 rootMULW^ 70 +1 135

Ti 471, 35 % roye 47% ..... 175

r t - 136 9fT rrafaMorH.aOp. 129 ..... 102
. i 80 64 Transport Dev. . 72% +% 4-S

: : 10 s 95 »Trid«tcamMp- ■» ■ ftoo

:.;i 63 « Triete 43 063

tL . 308 58 rmrwiHra-a .66 +1 |8

:? 52 32 UKOIntL 37 +1 154)

: -i 670 575 Unilever 587 &JB

' i £20% 08% U0VN.VJI42. £18% -% 06029
83 74 United Gas lads- 85 +4 4.9

y ,: 23. 15 U. Guarantee 5p_ 20 ...... —

;.»• 189 150 United Parcels. 1B9 +4 .05.

ttg 56 45. East Lams. Ppr 50 35

47 248 ZW axa/ratus 230 6.0.

75 78 70 Ferry Pick lOp. 78 H236 1

LS 03 75 78 70. Ferry Pick lOp. 78 H23

29 7J 63 23 19 S^-Papers — 23 ...... —

08 53 «« 142 100 - Geers Gross lOp- 142 +4 4.0

24 6.9(04 85 58 WeodRetesltlp. 83 u25

L4 8.4133 74 70 . Rarrtsoa Cowley. 74 3.85

1 1 f .

163 24% 18

- M3 130

— .22 . 13

18 DrsfeLFraW.
4 (Voagbal _

£76i a

» +1

|i

I ±

42

s i

SI.

32

95 +1

«

2fl

188 +6
82 +3
42%M +%

16 ::::::

«

26*

M +1*

17 -%

1S1 2

135

S +2“

66 :

I?::::

3

59

3Pz

td

105% 89% MerdmtsTst— 96 4.15

59 50 MidWyndlm.TsL. 52 ML7

77% 67 Monks Invert 72 24

65 53 Mont Boston lOp 60 -1 L25

17 13 Do. Warrants 15 -1 —

157 146 Mowgateiw.TsL- 355 173

79 63 MoorsMr Trust— 65 ..... 35

82 69 Murray Catedenai. 79 H4.0

77 65 Do"B" 75 —

72 61 Murray Clydesdale. • 65 L73

65 57 Da 3 62 —

145 126 MmySlendevon^ 140 +1 27

89 74 Murray Norton. — 79 +2 155

85 71 DaV 75 -

88 77 Murray Western- 86 +2 25

83 72. Murray Westerns. 0 -

475 250 NegitSJLSJSl. 475 QBc

104 70 Nrote.lw.%5(p. 76 -1 -

80 55 New Darien OH Tst. 65 s015

20% 18 NewThrog. lac- 19% ...... 20

222 192 Do. Cap. 0 222 +2 -

351* 21 Do. NewWfrts. - 25 —

128 98 New Tokyo Inv. 50p 107 —

97 78 1928 Invest 96% 4.75

144 127 Nth. Atlantic Sec. 129 ...... H2J5

139 105 Nth. Brit Candian. 116 ...... 51

144 126 Nthn. American- 342d +1 154

268 228 Northern Secs— 232 ..... 4.4

84 76 Oflfc Assoc. In*.. 0-13 3

69 60 • Outwit* Irw- 63 ._... 225

176 150 Penttandiiw.^ 17U +1 635

89 67 PrerauMetabTrt.. 68 +1 -

383 343 RIT50p 380 41135

156 123 RTT & Northern— 146 +1 66

174 143 Raetwn 162 6.9

63 34 Rights &te. Cap- 60 019

148 123 River* Mere 131 75

128 109 Rher Plate Def. _ 117 S3

£47%£4Z%RobecD(BrJR50. £43^ -% 025-2%
470 425 Da Sid).Srcs F15 «2 -4 552%

£46% £40 RdlncoNV FI50- £42%-% OH.4%

460 400 OOjSKj. Sh%R5_ 422 -3 0144%

129 110 Romney Trust — 119 4.4

.58 52 RoscrBmondinc- 53 ..... 65

149 126 Do Cap 145 +1 —

109 99 Safeguard Ind — 107 58

166 155 Sr. Andrew Tst-- 365 65

347 131 Scot. An. Inv. SOp. 139 +1 4.4

263 245 Sent Cdle* *A'-. 246 1L5

49+1 *

317 +6 — — — —

09% Q75% 29 8.0 43

i ; l.*& a y»*i

220 +4 " - - - -

4M +2 24 6W7

54 49% X 13.0 —

190 +2 65 22 46127

304 -6

37-1

21-2 — — — —

160 -10 — —

160 — — — —

72 — — — 604

£53 04%% — fl.1 —

157 -5 +— —

62-5 — — — —

218 ..... 8.4 44 55 52

483 -2 131) 52 46 55

32 — — — -

21 — _

197. ZQ5c - L4 -

197 QL92 — Lfl —

39-1

45 — — — —

65 s015

19% ..... 20

222 +2 -

_W% 1 075

§§* ± *51

0 -1 33

63 225

17U+1 635
tt +1 -

OVERSEAS TRADERS

u 7.0

— 3J>
U 63
LC 5.0
11 27
LC M2
U 51
LC 53

aB 1

“H

09 82

89 79

59 47

Andrew Td-— 165 65

t.Am.lm.50p. 139 +1 44

ft. Cities ‘A'— 246 1L5

CEast Imr — 83 335

dtish inv 23M + 1 46

£46% £40 RoUncoNVFISO. £42%-% 04.49

460 400 Oo.Sub-SIrtFS- 422 -S EQ44*

129 110 Romney Trust — 119 44

.58 52 ftoserfimond inc— 53 ..... 63

149 126 Do Cap 145 +1 —

109 99 Safeguard Ind— 107 58

166 155 St. Andrew Tst-- 365 05

347 131 Scot Am. Iro.SOp. 139 +1 44

263 245 Sent. Whs ‘A'- 246 1L5

90 77 ScoLEasUm — 83 . — 3J5

142 124 Scottish imr 136* +r 46

204 175 Scot <6 Merc A — 375 986

169 149- SoLMorL&Tst. 162 +1 53

112 95 Scot. National -X M7ai h3.+3

108 88 Scot Northern— • 94 +1 338

89 79 Scot. Ontario 89 335

59 47 Scot. Utd Imr 58 +1 16

259 226 Sec. Alienee 1st. 256 ..... 935

118 101 Securities T. Sc- ni ..... 53

620 580 Meets* to. SUSS- 600 Q25c

334 120 . Shires Imr. 50P — 229* 116

165 149 SPLTT inc. lOp — M9 05 2

114 86 SPLIT Cap. lOp. 106+1 —

For Sterling Trust see Fleming Americas

34 | 29 {Stnroi EntHwlOi. 29 7-1 04.

1091,1 90 &UBMFarU«a- 95 ..... —

31 21

76 59

161 123%
141 Uv
18 12
113 52

160 126
ltM 84
18« 115
•£28, £24%
182 512
344 265

i E
if dS

46 36

157 123
157 120
75 55

*243 192
82 63%

tewFatoqSIli-
Ausl Agria 50c
Bemfortfe.6W.l-
Bawx* fTta.) 5De

I Qp

Crosiiv Home —

F>rday { Jpmet) .

GirS-Ouffus

Gt Nthn.00-
H>kns.Cros.£L
InchcapeQ— .

Jacks Wat

Lonrho —

MNcM Cotts-
Nesco invests..
Ocean Wkas.20p
Parts e.Zoch.l£k
Da -A’ M/VJJk
SkoeOubyimS

Steel Bras.

Tozer Kems. 20p.

22 ....

99 .....

MO

135 -1

..14

62 -3

126

91 +2
US' +3

151 62

82 63

192 154.
16 10

56 22

26 ID

27 14

23 1 2 %

368 160
10 2 %
63 38

170 134
32 15

22 9

30 10

ms %

14 9

190 92

44 26

28 11
IB 4 %

202 145

57 10

8 3

18 • 14

if fi

*84 14

123 67

90 34

98 34

150 92

62 40

352 252
32% 26%
273 138*
205 105
56 34

27 10

46 24

65 33 .

II 4
50 6

247 200
34 16

11% I 7
255 182
140 85

12 lfl
630 410
525 330
155 155
24 35

130 80

426 366
98 60

42 30

450 280
330 240
200 155
110 75

no 100

85 70

Australian

M20c. [ 17 .....

Argosy GoMNL 25=1 2% .....

Corp. — dJ 73 +3

invito I Kim. 70 +1

50c 172

13%

29 -2

195 +5"

41 -i"
160 +2

15

13

11 . —
4

13 .....

140 -3
21 -1

14 ......

5

UO -4

1 3 2 ::::

17

12 ....

106 -1

34 -2M,

84

36 -2

66

9* -2

40

256 -6
28 -1
153 -3
135 —

43

. 11 -11

40

34 +1

7 ....

8 ....
201 —

16 .....
14

iQlOc 23 8.7

C ?8

032%c 09101

ttc 19 08

S 33 22 ;

Be U 06 ‘

PTI «»5c [4 ( L9

1018c 10

1W*c 19 46

Z jt
ZQ5c - 20

»Mcj U|_*

Pengkaien 1C4>
PrtalingSMl..

IBesj SMI.
Karo. MU.

rdTi 255 (192 (TronohSMl

182 S «I35c oJ

• S zz — — j

410 17 J) Ld

420 210 5j

1 S::::: 4 S- 0 V

% z ^

32 +2 ±063 p
340 +5 +L0 —

SS ::::: & 1,

m Z Z. ti

70 *025% U

192*1 -3 QSOc 23

300

18

69 .....

39%

no

40 +1

V

132 +1

55 |

240

68 +1

! Copper

[325 (195 |MesslimRL50.-| 230 |+10( Qttc | 52(15.9

40 I 20
**1

89 05

50 +1 L6
256 ..._. 9.15
111 0

600 QZ5c

329 * 118

149 ...... 012

306 +1 —

34 S

1091, 90
147 127
114 90

87 72

81% 70
178 144
177 126
U4 92
90 71

101 8S
78% 6
171 146

S t 1 .. “

oddnldm Imr.. 138* .—. LO
lAutoMteTrort. 109 . — 15

70 575 Unilever 587 26.87 3J L5 £4 38 (120 More O'Fbrr.lOp 120 3.7

20% 08% UnVN.VJL32. 08%-% 0M2* 3-J 8 J « £18% £1P, OgHvy & M. E . 08% -% QKIJ

83^ 74^ United Gas Ws. 83 +4 4.9 1.7 84(82) 30 22 oSvesPtoer20p. 30 ..... 02

23 15 U . GuarattfMSpI 20 - - - - *455 305 Saatchll^ 415 -5 680

[89 150 United Parcels. 189 +4 45-0 3-513-6 100 90 Smith (Drttf)20p. 90 70

24 Unoehromelflp 24# fOifi 5.9 3.954 75 Smuriii(Je^. B QZfcl

66 50 Valor 65 +1 T266 24 5.9(08) 32 ZL Transparent Ppr.. » -

51, 3% VtoerslOp „?%--• .tr T- “ . JT* 58 48 U^WfcrlOp. 0 —4.29

AKMgs.8p.| 24 +Z 005

rpwbleMp 183*1 120

dy Mils — j 14 — |

IBs' t, Men see Trtefc Flrance Land •

O'Ferr.lOp 328 .3-7 27 45120

y&M.S2. £38% -% QS136 — 42 -
i Paper 20p. 30 ..... 02 60 10 18.4

MWpZ - 415 -5 680 0 2816.6

tlDMfi20p. 90 70 1611J O0

fitUeftnX 35 Q2fiJ% ♦ 97 6.

U 10
130 100
39 32

9% 4

SKS.1* 3M 2 -2 42 0350 | |

110 ■■■■■• tM 0 1D.9 — 205 p52
lade Potts. 10p 37 +1 20 08 7J W*

(after Hmr.Sa- 4 ..... — — — JLB

i: c 210 ts ZZ *wi

a =»

^ ;»t. 69 62 WWsonR.K.10p « gJ

% 85 71 Wedgwwd-^. 75 +2% ||j

i'. ; 182 148 WestaBewdlft. Iffi — f&9

• ■ 65 47 WHeLM.A.HI®. M

; * 310 198 VBaUa»4Amto- 310 +5 50

■>* 69 56 Whitec

t 1 +15 6 WWnej

60 44% WlHoes
»; 22 3 WHkks

♦1010 22 70 80

1863% 25 78 60

100 19-31 20J

d33 L« 76 30 92 82

«J 17 63 52 2M Ifi

15.9 25 46124 -28% 3%

iQ30r S3 5.1 3.7 84 69

TO 50 22 103 m WB

1305 13 13M 3 2 5*

66 +1 13J5 13 13M » ^
5 + ?.. d4J3 — 1L8 — ^U6 133

saSs HH

PROPERTY

■ MlOpJ ‘90td +2 tL35 3L2 21110
Sfcn. 268 +2 44A 22 3.7 178

ates— 22% +% — — — . —

pnto.- 73 4Z0.5 - LO-

■Tiry no 20 15 2^KL5

tst. »% — . SLD L7 48J5J

iDCHwiu.iL)3to 366 +2' t7.9 0 68 49

BHt«i{Percy)_ 1M +2 6.9 10 5J (Sfl

TOBACCOS

470 1343 IBAT tnds 1455 j— .1230 I 34,721 45

B (VIBSfad-a tdwwflH

TRUSTS, FINANCE, LAND

• Investment Trusts

■TU ■ ' - I a MS to|K

1171 346
67i, 50
26% 22%
140 120
124 107
106 101

67i, 50 Temple Bar

261, 22% Throg. Growth —
140 128 Da Cap. 0

lOtyof Luton T jl. 86 +2 N5D

R Ind. & General _ 77*J -% 30

WaallksmieB. 163*1 u6_75

North America- 172 +1 625

Padftc Basin- 101 — NsZ.0
Prap. Inv. Tst- 79 — N22

Tecnaoiogy — . 99% +1 33

TnoteesCorpc- 71 +1 295

hnotooy 161 43

WieBer 62 H3.95

og. Growth — 25 258

LCflp.0 140 +2 —

ogmortan 123 +1% 60

Tuivest Inc — 106 9.1

rRPrap. Imr. T
nt Technology
rRTnsteesCor]

. 1982

B%b Lnr

92 83

72 60

75 50

440 570
51 44%

72 61

54 45

280 240
95 78

.67 46

175 136
16 U

245 235
30 200
395 385
378 270
148 98

298 285
240 Z12

RUBBERS AND SISALS

j«| . Start ) Mce J* -*1 ft |ct

Miscellaneous

Dominion -
Mines 10p

Res. Carp..

March. 10c.

ExplaiiraGold-
tUghwood Res.
Negate CS1

0o.9WtCiiE
abiia Into. CSL
Southwest C. lOp
ara Exptn. 51-

23 . — —
33 . — 055

55 —

200 +10 ±Q60c

70 — —

190 —

420*1 +8 16.0
£9^*1 z Q^%

X -3 -

315 -5 —

doss I 10 I 60 1

-l-l

83 3-33 U 60

61 siO 09 7J<

50 088 U 25

400 ...... s70 L9 25

47 -1 414Jc 13 7.2

Ifi3* -2" M0 08 TO

• 69 015c 10 S2

47 +1 iQlDc 20 5J
270*1 +10 +8.0 * 42

82 — Q35c + 4.4

46 ..... fflBc 13 93

175 40. 103 08

11 — — —

NOTES

Untesmhuvbe Imtenmd, prices and net dhrMendt ate In pence and
dHMkmtiORi are 25p- Estimated ortce/earrtnps ratios and coven are
based on tatert anmal reports mid a c c o un ts and, where pasiMe, are
updated on haM-yearty Apaes. P/Es an calcutaied on “net"
distribution basis, earnings per share being computed on profit after
taxation and imu ii e wed ACT where applicable; bra c ke t ed figures
indicate 10 per cent or nore dWtreoce IT ca l c ito tfd on “*T
dhtrfc u t i on. Covets are based on “ m asltomi " dbtributtan: this
compnes muss dMtond ants to profit after taxation, exdadftig
exEMUoraTprofits/Nsses fam incMtogestonted extent of offisettaMr

ACT. YleMs are based on mkkflo prices, are gross, arDooed to ACT at
90 per cent and allow for value of declared dbtrtbutom and rW*s.

TEAS

India and Bangladesh

223 I +5 J 100

• “Tto” Stock.

• HlgiBaml Laws marieHIha have been adhstod to aHow for rtpU*
bares for cash.

: t Ifltortm store tarred or restned.

1 Interim since reduced, passed or deferred.

It Tax-fnu to ao nrub b uts 00 application.

+ Fkaees or report awaited.

f USM; not Rsled on Stock Exchange and campmw not suMadad 10

38B 200

270 -2 t025
98 -2 8.49

290 450

230 223

106 101 Tor. Invest. Inc.- 106 9.1

178 160 Da Cap. 374 +4 091

87 73 Trans. Oceanic — 81 125

KH n Tribune Invest— . 99 +1 3.0

70 60% TrptevesLIncJiOp + 61 7.18

377 310 Do.CapttaJ £1 357 +4 —

179 151 Utd. British Secs. 161 7.0

122 +1 5.92

60 44% WlfteStJ.I 50 ..... «03 — UJi — ^ fS T5 Vn

S l K££te 10 tr -z = - B H KiW: S5 :i 4|

S S6 HKg^T lS +1 *60 26 6.1 73 ^4 0#SccS?2OOZ SZti I... <02

m ™ W i4-«0S 29 WO? U3 m Brixton Ma. +1 «

70 «

: s -. 25 20

235 140
.1 ■ 95 78

sss \ - W “ s« I I

jaJ Dyn-5p- 92 +1 <035 4 \ ^ ^ ^

» w na —

9 ^., _ 4 « +

«J) 153 108 Cap. & Counties 123rd — LB ♦ « j

— 135 223 CadHf Prop 20b. 124 ...... 10 4 18 f

19 14% Karikmltorilb 15 +% 05 U - 0M5

* «% 34% Esrrtm batmen M -f ^37c + 102 *

». Ill .MaMft ffl +1 « | W

370- 320 Chesterfield 2MM +10 125 l 3JJI

595 ‘ 580 Ctarcfdfnr EsL. 583 +3 112.0 17 29 290

580 188 CJLLA50p.~ 495 1 1 « U,

125 . 108 CUrite NfcfaWb. 108 45 L W iJ

T.7 — . 265 245 lompcn Hite 20p 265 L95 43 10 29.9

02' - » 37 Su&SsSlDp . 41 +1 4276 L5 96 (Ul)

02 - 'll 43 PpbyihwT.M? « +1 ft 27g|

— — 14 11 KmsttatSiolOp. *1% ■■= ■ 90S 44 30102

« - 104 82 Ratos Prep. Gra- M4 +1 909 . 28 6.7 70

90 — 213 155 DaehfllHIdgw. 167 +6 305 62 33 8l9

126 *"■ §+ 1D9 5Sfci« 130 -« « 6 c - 5.7-

63 - 23 18- Dares EsMKlOp. 19 . . lg * 94 *

— — 99 76 Bpftw-Tjms..-. B +3 096 V M2 26

fB.4 — T 49 130 Ests.&Agenw. M2 — 10 — 10 —

M - 70 B « +2 L75 L9 42 W)

7.7 — 150. 136 Bt5.Priv.tm- 140 +1 70 13 73173

93 — TO 55 EvarnLwb— - 59 — . IhlO 22 4i 128

5 . 4 - 315 « nMW%50b 113 +1 1435 2J 50-70

m IK RAlSrtt^. 174 — +369 10 3.0(43)

05 03 - 25 , ib FheOafalnysSp B ---- - — —

42 + IBB 160 GL Portlafld 5tto , .164- +2 50 12 4.427J

U Is To toStrSjfi. 76 - r . t2J 35 4J 6.6

15— tt T9 GreenoHt 5p-- 16% +% —. — — —

15 - ite 124 SreycoatE^b UO +2 00 W UBjJ

7 A U tor 520 Hamme r ton *A* 575 — l!30 "♦ 37 +

05 — m % MMPnlOp. U3d M90 02124 52

S343 W.W BSKsM +2 ^9.:L3 272t4
- 89 61% HKL3«IHK$25 76 —dge f. fj

93 — ■ 275 225 Imrr Property- 240 ; TO® Hmi

7-7 — 95 82 TerfflHttowrt- 88 . — LU .12 16400

0] -. 74.. 62 Kent (M.PJ lCp- g — VLL 0* .2^ 52

104:—- 34 22 UttHlf Etoesb 22 — ■ — — ■ 1 /J

f9 J30 1 * m SngPlooertles JS 6 +3 45 19 35213

6.4 102 £U )6 EM DbSMcuSbKE. £»2 +% 5i 196 —

70 296 49% LamluvesL— « +*1^ U 27 430

W '312 272' Land Sea a — 28W .— . 8.4 13 43208
•4.7 - £216 AM DalOMw. 1 ® 095 -- “

02 - 234 174 Lend Lease 50c W — t«9* 2| 52 90

(u — 49 Q . QD Ln.Pror.Ste Ub. 4SS (3.6 . .10 12 —

M144 £178 C2S 0a6%xCar.l9P4. 030 M0 f50

fiflO £86 Da%c0ftMM9- »7 ■■■■- 04% - 0^ -
2(0 212 LyoUmH«te-20p Z» +2 5*« 21 2|M|

*244 L9Z ME PC 20W +2 05 14 46216.

170. 124 ItarttoafcKtecM. IS? -.-. 3365 3AU4 -
^ ®- MariboroaghSi *■ +1- •*■?

a 5 t. 6.4 cm u Marier Eflatej. 56 20 .16.5a gs3)

INSURANCE

r C

** -3 ■«y£l

370- 320
595 580
580 488
125 UM
■7A- X5 245
— 58 37

02 - "51 43

— — 34 11

.93 “104. 82
90 - 213 155

126 — 22+ 109
61 — 73 IB

— ~ 99 76

fB.4 - 149 130
M - 70 53

U — 360 136

'&}B

* 1 1SBT

| e £29%

ft” M%( 57
:»■• 19 IB
"',122 76

76 45

!;» 54 44

••I 1 IE 106

■ a 42

152 Z22
51 41

184 89

306 268
68 58

210 166
64 58

93 78

66 57

63 54

146 129
48% 42
236 201
72 60

79 71

63 40

123 95

2D4 178
30 27

74 65

6b 56

107 152
96 84

93 75%

71 51

55 47

203 93

16 14

154 133

200 180
224 192
85 75

422 290
44 34
467 440

LEIS » „ mwi ■ sr s f .. &

OO 5.95- 341 13.9l — m 3 = Mariborouah5p 36- +1- 04 29f Lmto,

131' +1 60 32 63T&.4 u u: Marier Eflates - 56 20 j.lii 5J)01

;S —525 10 £fte 0 H' g-ifetoS x &J9J + 1 ii| +

93 30 — 2-3 — 147 123 McKay Secs. TOp. 130 f5 27 1 2ll 3.Dfe

£ Ed 8 : ¥&z\ g g % ::::: 21 z*™

.57 1+1 I13J I 20} l£$St 1 173 Ji+i |Mountvtew5p_|.15w|+l 12 4 2.9} +.

121 Aberdeen Trust —

41 Alisa Inv.

89 Ad lance Irw.

268 All iance Trust—

58 AHifund inc

166 Da Capital

58 Ambrose Inv. Inc.

78 Da Cap.

57 American Trust —

54 American Tst. *8’

129 Anglo Am. Secs—

42 Angio-lirL Dhr

201 Da Asset Sic. _

60 Angto-Scot- Imr. _

71 Arctiraedes ina -
40 Do.Cap.50p.-.

95 Argo inv. (SAU-

178 Ashdown imr

27 Asset Special-— -
65 Atlanta Safe. life.

56 Atlantic Assets —

75 Bail He Gifford Jtoto

71 Bankers' Inv.

152 Berry Trust

84 BaiopsgateT*..
751, Border fiStfotlOp

51 Bretnar Tst

47 BrtL Am.&Gen-
93 British Assets —

14 Brft.Emp-5ecs.5p
133 BriLM.&Cen.Dfl

180 Brit, imrat -

192 Broadstone {20p>

75 Brwmer Inv.

290 Cafedoroa ins.—

34 Cambrian and GftL.
440 Camellia liws. lOp-
266 fCm. & Foreisa—

For Capital & Nad. Trait

81 Cardinal Dfd

78% Cedar lltv

183 CiBn1l5.lna£l

194 Do. Cap.

7D% Charter Trust-—
145 Child Hearth £1 —

29 City & Com. lot-
222 On. Cep. {£U-
75 City & For. lire—

95 Dty of Oxford — -

122 Ciaverhoo»50p-
248 CominefTtl & Ind .
261 Cros’nl Japan 50p
103 Crcssfriarc -----

92 Cystic Fibrosis £1

35 Danae(lncJ

a Bifttta

31 3 0o.cap.50i.-
252 Dominion 4 Gen..
MO DraytooJapap —
156 Drayton Cons—

55 Drayton Far Eest.

15 Da Warranto ®9L
190 Drtyton ftrroier.

60 Duahrestinc. 50p.

400 Do.CapitaJO-

88 Dundee & Lon. — .■
91 EdhtoghAraTa..

64 Edrtu^h kw —

52 Etetra inv. TsL _

UO ElecL&Gen

275 EnerrefeL&Sar*.S5
106 Enailraemali-
85% Eng. & N.Y. Trust

59 Eng. & Scot, lire -
23 EiQ.Nat.lw.Prtfd.

71 Eni Nat Irw. Defd.

245 +2 (6J- 10 60

48 4158 08 4.7

92 .—. UZ7 10 42

306 +2 1125 10 50

59 +1 725 4 170

105 +1 036 — 03

60* -1 73 ♦ D.4

5 225 U 52

60 — _ _

137 52 12 53

42% 52 09 173

225 +7 - - —

66 24 14 52

79 +1 t80 10 15J.

56 — — —

108 013% 12 72

Itt 60 09 50

‘ 28 -% —

72 30 22 20

S9 hj025 22 0.6

06 +% 3.93~ *" MT

265 +2 17 13 15

88* -1 30 10 5.7

82% +% 1275 U 40

673 22 4 47

54 +% 20 U 60

97 (4.4 12 60

15% 085 12 70

MW 50 11 5.0

194 +2 92 ft 60

2D6 +2 7.45 09 52

80 3.0 II -50

<22 +4 tH5 U 40

35 +1 (06 09 24

457 60 4J 19

173 50 d 40

see Femtag Japanese
89 B3 LA 53

106 40 U 62

182 040% 10 220

TO +%' 3« lfl 63

345

30%-% 299 10140

260 +2 —

76 - - -

109 — 50 U 72
333 — 605 LO 70
285 +1 fllO LO 50

285 10 LI 00

116 60 Lfl 80

103 — —

38 — 40 101SJ

3%

246 H2LD 10122

179 151
121 102
322 245

92 70

93 77

380 363
' 66 46

77 65%

335 115
291, 26
137 125

1482 I
fflrt La* j

215
215
69 52

97 70

50% 38
■90 57

*46 35

£75 £64
195 129
225 172
11 % 10
Z30 2flS
145 113
251, 19%
94 67

380 355
28 25

28 15

147 95

22% 17

«r 53

56 34

£7*

320 ,

90 ( 68
410 j
480
05%
£14%

575
543
12
305
M%
ior

UhL British Se
US Deb. Corp..

U0.& General TsL 3D +2 —

VTldng Resources. 78* +1 00

W.CsLATexaslOp. 81 -1 13

Wemyg lnv.£l— 375 200

•34 -1 005

1 Inv -I 69 21

an tec . 132 +1 6.76

.&Ubcs— > 28rt 20

Co’slPv£L.| 137 +1 6.4

Finance, Land, etc.

Star* j Price M «

182 -1
222 +4

6?

73*

is 1 *::?..

£68 + 2 ”
132 +3
230 +4
11 %

205

120 +3 1

7| -2

360

26 ......

60

19

17 +1
141 +3

n 1

24 +1 1
10 +1

57

Da Defd. 1 37

kTUdMfcWBl £67 +1

277

68 -2
34 0 -5 |

EM

SJ

” h
10 —
gL25 25

Sri Lanka

425 |3fi5 (Laura £1 1 388 I — 1 330 | 09(122

MINES

Central Rand

890 [554 Durban Deep Rl_ 755 +W Q185c| 5.9J —

602 376 Eest Rand Pro. Rl- 377 ...... CBOc 13Jj -

£3 1% £19% (fondfont'n Esc R2 £25% +6 0750; 12l5.9
125 ISO Sbtoer&JitoRUC- 110 ..- . - J —

121 194 (wS^RandRl— 95 «15c 6.9| %

Eastern Rand

78 ...... 1Q60c 12] t

S ::::: — — —

273 +8 QUOc ft 215
3S7 +U 0147c 13 ZL9
503 +22 ML66c 1_2 i

7B Hg5c 14 i

101 ®3c li Z7.9

131 Q40c 16170

89 — .. (80c ft 190
m +% t VUk 12 i
<7% — — —

0J.9 23

019 23

100 07

104 90

12 10
088 13

t!08 24

104

140 S3

lies

Z719J

165 +5
470

12 ......

283

18%

98

255 +3

£32

£76 -1
43

7%+%

200

TO

50 +1

a

11

87

275 U
tR25 13
<8.75 30
<556.0 17
0420 10

ff ^

- 50

«f = J

024c ♦ 70

*2jT 23 52
111 10 30

044 21 5.7

25 4 41

> same degree of regrtufon as Used securities,
tt Droit in under (*£163(3).

* Price at time of sumeoBoa

9 Indfoatod fl vM e nd after pmflng scrip andfor righto brae: carer
relates to prevtaus dhadeud or forecast
I + Meager bid or rowvadsatiM in progress.

8 Not comparable.

+ Sne fattrin: reduced firaf and/or reduced eandugs lod faiie rt.
S Forecast dhsdend; covsr on romings updated by (atom interim
statement.

4 Corer allows for conrerefon of stores not now mfttog for dWdenda
or ranking only for rvstriaed dtyUend.

It Cover does ant allow for stems which may abo remit fbrrifoidend at
a futsee date. No PIE ratio unmliy provided.

■ No par vabe

tf YWd based on assaanptlno Treasury BW Rate says unc h a nged >w rt
maurity of stock, a Tax free, b Figures based an pmpectus or other
official estimate, c Cents.# DMdtml rate paid er payme on part of
capital, corer based on dMdend on fob capital. • Redemptiou yWd.
1 Flat yield p Assumed dl ii dan d and yield bAastned dMdera and
yWd after scrip issue, j Payment from rapitai sour ce s, k Keren,
m Interim hfotta Stum previous total. aMgMs Issue pending.
NEarrtnBSlmred on preHmfnary figures, s Dividend and yWd exetade a
specW pwmenL t Indicated di vidend: cover relates to prevtoos
dMdend We mto> based on latest annual carotnp. u Forecast
rflwiefxfc cover based on prevtois year’s earnlrv-v Tax free up to 30p
fnthe£.x DMdend cover m axcass af 100 time*, y Dtrtdeod and yield
based oo merger tenaa z DMdend and yield tocUe a roecM paspaant:

Cover does not apply to special payment. A Net dMdend tad yield.
B Preference dMdend passed or deferred. C Canadian. E Minimum
tender price, f DMdend and yield based on prospectus or other
official estimates for 19&344. G Assumed dividend and yield after
pending scrip and/or rights issue. H DMdend and yield based on
prospeetts or other official estimates for 1962. K Florets based on
prospectus or other official estimates lor 1981-62. M DMdend and
yield bated on prospectus or other official estimates for 1983.
N DMdend am) yJeid based 00 prospects or other official estimates
for 198263. P Figures breed on prospectus or other offidal estimates
for 1982. B Gross. T Flares assumed. Z DMdend total » data.
AObreeie tl oitc * ex dMde n d; re cx scrip issue; re ax rights; a ex
a*; to ex capital tosreihation.

REGIONAL MARKETS

The f o B earlna is a s el e cti on of LondM quoattenanf shares prevfarofo
Bsted only in regkanl markets. Prices of Irish issue*, asst of which are
not officially feted in London, are as quoted on the Irita exchange.

AKany lov.20p— .1 40 KISH

Bertrams— — — —I 17* . — Cana 9%

BdBMir.Ett.SOpJ OO . — Nat-tej*.

02% Ffa 13% 97/02

» Mfonoe

98

3

sr E

n

215 +10

Finance

360 -2 M30 42 27 1

161 +2 7.9 U 70j

62 — 124 09 28

16 ...... — — — 1

206 — 1073 11 7.4

61 ...... 705 4 232

475 +3 — - -

99 +1 40 U 50

202 005 10 12

70. 218 11 44

59 (2.99 10 12

314 1245 L2 3J

340+10 - -

Had 5.75 4 73

97 +1 405 LC 60

64 10 0 9 40

27 24 4 13 4

72 +1 47 4 9.7

OIL AND GAS

275
524
62% 56
56 JO
21 J ID
153 i
£65fo
220 1145

124 1-2 1125

380 -5 — - _ -

&A +2" 120 1J ?0§|

GralAoddrat
Gen. Electric
Glaxo
Grand.....
G.U0.‘A'
Gsantan
G-KJL—
ItoMerSMd

OPTIONS

3-month Calf Rates

Fraser J 15

8

2

19

10
42

20
12
12
30
9
TO

14
32

Ratal Elect 35

RJLM 6%

4 tonkOrg-Oid. - 20

28 ffoedlutni 26

65 Sears 6

42 T.I. — 13

V Tests S%

<B Thera EMI 42

25 Trust Nooses — 11
15 Tumer&NewaH. U
30 UsUevcr 55

Oft. Land

Cap. Counties —
Land Secs . . ..—
MEPC

Sinwei Props. -
TownOCtty —

Ratal

Bji Haireila,^

OfTZ- f ctfliNCH» u

BreratoOa

CharterfaH—

KTA

26

20

6

u

6

Shell . .

30

Ukranar

38

I Hues

Charter Com,
Cons. Gold—

Lonrho

Rio T. Zinc-

-2 2045.

8 :::

146 -1 05 26 03 52

£65% +% *1^6160 tlU -
237 ._... +— 1 —

Diamond and Platinum

£36%|§23 Aart>-Am.ln0OcJ. £24 +% <
362 2W Of Seen W. 5c— 220 „... J

680 65D Da4(focPf.RS. 6gJ ...... C

360 190 IrnpaJa PlaL 20c.. 220 +4 f

378 IDS LyJenhtvg 12ijc- 120 +6 4

228 140 Rift. PtaL 10c — 154 +2 I

£24 +% 0700c 4 150
210 „... me 20127

650 fflpOe > 16.4

220 +4 Sufic 20 t
120 +6 1040c 10 ±

154 +2 Q4k 21150

A selection of Options traded Is ghm m tt*

London Slock Exdunge Report page

“Recent bswy” Ml ^Kgfats” Ppgg 31

Hris sanrici is anBable to erery Coapaqy dealt In no fiset
Etthmgei Unoiig h m it the United Kingdom for a fee of £600
per Men tor each security

36

Get afaWo

fj wvb»ob

or detail^ of industrial development sites
Contact Stove Wehrle,

°ept FT, The Civic Centre, Newport, Gwent
iTet: (0633)

Wednesday June 9 1982

FlYGT

EEC renews steel controls

BY JOHN WYLES IN LUXEMBOURG

THE EUROPEAN Community's
mandatory controls on steel pro-
duction were renewed in Luxem-
bourg for another year yesterday
after Italy allowed Us objections
to be overriden.

EEC industry ministers
reached agreement with far
greater ease than expected. The
Ten were clearly anxious to re-
move doubts about the imme-
diate future of their steel
restructing policy before ‘the
announcement in Washington
tomorrow of the U.S. Depart-
ment of Commerce’s prelimin-
ary findings on a numher of anti-
dumping complaints against
EEC steel companies.

Jn particular, they reaffirmed
support for the timetable of
eliminating by 1985 government
aid which U.S. producers have
alleged allows exports at un-
fair. subsidised prices.

The ministers did not discuss
the question of third countries
taking advantage of recent EEC
steel price increases to push up
exports to the Community.

British steel industry officials
have expressed alarm over this
trend in the past week but Mr

BRITAIN and France are on the verge of settling their dispate
over fishing rights in British coastal waters. If talks suceed
fully they could remove the most acrimonious stumbling block
to the establishment of an EEC Common Fisheries Policy, a
goal that has eluded the European Community inspite of six
years of negotiation. Page 2

Patrick Jenkin, Britain's Indus-
try Secretary, felt unable to
press the issue because British
trade statistics are still several
months in arreas.

According to Mr Jenkin,
ministers also acknowledged
that existing closure plans will
still leave too much surplus
production capacity by 1985. He
said they agreed on the need
for a 30m tonnes cutback in the
next three years — from current
levels of about 200m tonnes.

Mr Jenkin said this meant
there would have to be " con-
sideration ” of further restruc-
turing in the British Steel Cor-
poration's next corporate plan
about which he hoped to make
an announcement next week.

He also reported failure in

his efforts to have special steels
included in the production quota
regime, but the European Com-
mission has agreed to monitor
imports into The UK and to re-
port back in October.

Mr Bill Sirs, general secre-
tary of ihe UK Iron and Steel
Trades Federation, who was also
in Luxembourg, said no further
cuts should be allowed in the
British steel industry.

Unlike the present arrange-
ments. the new quota regime
which comes into force on July
1 will include wire rod produc-
tion. This means that about SO
per cent of the EEC’s steel out-
put will be covered by manda-
tory controL*. Most of the
balance is subject to voluntary
limitations agreed among the
Community’s steel producers.

The other significant change
is that the number of small
producers eligible for possible
special treatment- on quotas has
been increased by a rise in the
production limitation from
60.000 to 100.000 tonnes a year.

The impact of the 12 month
quota regime i has been an in-
crease ‘in prices of about 25
per cent which has reduced
losses across the EEC indus-
try and facilitated the tightening
of controls on government help.

It has created special prob-
lems for- Italy, however, which
took up a considerable amount
of Ministers' lime yesterday.
Rome requested a 720,000-tonne
increase in quotas for its pro-
ducers on a variety of grounds.

It secured agreement on a
240.000-tori ne increase of pipe
plate, and 120.000 tonnes of
rolled sheet. However, consulta-
tions with Eurofer. the steel
producers' organisation, pro-
duced an offer of only 150.000
tonnes on the 360,000 tonnes
of crude steel production which
Italy warned to keep, but which
had slipped into its quota
through computer error.

£100m loan
stock issue
by Midland

By Alan Friedman

MIDLAND Bank has hecorae the
second British bank this year lo
raise £100m through a 25-year
unsecured Loan stock.

The issue bears a 14 per cent
coupon — the fixed rate of
interest — and is priced at a
small discount so that a buyer
pays £9S.55 for every £100 of
stock. This provides a yield of
14.22 per cent at redemption.

The Midland issue came four
months after Barclays Bank
decided .to pay 16 per cent on its
£100tn, 25-year loan stock, an
issue which ranked as the
largest, straight, fixed-interest
stock for a commercial UK bor-
rower in the domestic market

The issue, whose price gives
it an interest margin of 0.9 of
a percentage point over a basket
of three Government stock
issues, is to improve Midland's
capital base. . Barclays Bank,
when it launched its loan stock
in early February, said it was
paying about three-quarters of
a percentage point over the
going rate for comparable Gov-
ernment stock issues.

Mr Charles Davies, Midland's
assistant general manager
(finance), said last night: "This
bond is designed to increase our
free capital ratio, which was get-
ting low and could have inhi-
bited the natural growth of the
bank."

At the last year-end Midland
Bank's free capital ratio — the
bank's adjusted base against
deposit liabilities — stood at
3.5 per cent. The addition of
£100m »o the capital base will
nudge the ratio up to 3.S per
ccnL

Mr Davies said the bank had
derided to launch the £I00m.
2002-07 issue in sterling, partly
because it had relatively little
subordinated debt (that which
ranks behind depositors’ debt
with the bank) in that currency.
At the last count. Midland had
U.S.S845m f£472m ) in the

American currency, DMISOra
(£42 .2m) in the German cur-
rency. and less than £100m in
British currency.

On a fixed-rale coupon basis.
Midland is paying 2 per cent
less Tor its money than
Barclays: the issue price sug-
gests an underlying saving of
i* per ceni.

Placing of the issue was
completed last night by Samuel
Montagu. Midland's, merchant
hank subsidiary. Stockbroker
to the issue is Cazcnove and Co.

Continued from Page 1

Output prices rise 0.5%

BY ROBIN PAULEY

MANUFACTURERS' OUTPUT
prices increased by only 0.5 per
cent last month. The annual
rate of increase of industry's
raw material costs fell to its
lowest since November 1978.

These new figures have given
a boost to Government optimism
tbat inflation is well under con-
trol after sharp rises in the
monthly figures for April causejl
some temporary* eoxiety.

Output prices — the prices
charged by manufacturers to
wholesalers— are a reliable
early signal of the movement
of inflation as measured by
prices of goods in the shops.

The annual rate of retail price .
rises is already in single figures,
and yesterday’s figures indicate
that further reductions are
likely.

The Industry- Department said
that output prices rose by 0.5
per cent in May compared with
April This took the index for
the factory-gate prices of British
manufactured goods to 238.3
(1975 = 100).

The year-on-year increase fell
to S.7 per cent compared with
S.S per cent in April, the fifth
consecutive fall. The annual
rate is now at its lowest level
since February 1979.

The index for cost of

Wholesale Prices

1979 1980 1981 1982

industry’s fuel and raw
materials fell by 0.75 per cent
in May. having increased by
1.25 per cent in April and fallen
"by 2 per cent in March. These
erratic figures reflect movements
of oil prices and value of
sterling.

The May figures were helped
by a rise in value of sterling
against the dollar, producing
lower sterling prices Ssr many
raw materials, particularly
crude oil. The reverse was true
in April, a higher sterling price
for crude taking the figures up.

The May fall took the input
price index to 236.9 (1975=100).

The change in the index on a
year-on-year basis fell sharply
from 7.75 per cent in April to
4.75 per cent in May. lowest
figure since November 1978 and
the seventh consecutive fall in
the annualised rate.

■ There could be further falls,
depending on the movement of
sterling against the dollar.

The principal - cause of the
output prices rise in May was
dearer tobacco products. Though
the input index fell, part of the
benefit of cheaper oil was offset
by higher prices for materials
bought by food-manufacturing
industries.

The final seasonally-adjusted
index for volume of Tetail sales
in April is 105.9 (1979 = 100).
against 106.6 in March. This is
only fractionally over the poor
figures of 105.5 and 105.4 for
the third, and fourth quarters
last year. The first-quarter
figure for 1982 was 106.6, the
same ns that of 1981.

In Aoril £72Sm of new credit
was advanced by finance and
credit houses and retailers.
Total new advances in the three
months to April were 8 per cent
higher than in the previous three
months.

Export of services down,
fage 10.

UK— Japan telecom deal likely

BY GUY DE JONQUIERES

BRITAIN and Japan are close
to agreement on a framework
for bilateral cooperation in
telecommunications technology.

The agreement would cover
both industrial collaboration
and joint efforts in long-term
research and development

The two countries have been
discussing a joint approach for
several months. An agreement
is expected to be initialled in
London today by representa-
tives from both governments
and their lelecommumca lions
authorities.

The agreement is understood
to cover three broad areas:

1. The. exchange of telecom-
munications administrations and
industrial companies in Britain
and Japan.

2 — A joint study on possible co-
operation .on clearly-defined
long-term research projects
aimed at achieving break-
throughs in advanced telecom-
munications technology. Such
projects could involve ex-
changes between universities
as well as national telecom-
munications laboratories and
companies.

3 — Discussion of ways to con-
cert the British and Japanese
positions in the International

Telecommunications Union
(ITU).

The union is a 155-member
inter-government organisation
which seeks to co-ordinate
world telecommunications
policies, particularly in the
developing countries.

Britain is also seeking col-
laboration between uk and
Japanese companies on assembl-
ing a package of low-cost
telecommunications systems
suitable for use in developing
countries, althnugh this will be
subject to further negotiations.

It was emphasised in London
yesterday that implementing the
agreement would require fur-
ther discussion and the negotia-
tion of detailed arrangements
between the different parties
involved in the two countries.

No firm projects have yet
been agreed for joint research
and development. But the
British Government is pressing
for collaboration on the develop-
ment of new communication
techniques to link the advanced
Fifth Generation Computer
systems which Japan plans to
build hv the early 1990s.

Such techniques could involve
tlic use of light signals tn switch.

as well as to transmit, com-
munications. and systems which
would give simultaneous trans-
lation of conversations between
speakers talking in different
languages.

The discussions in London
this week have included parti-
cipants from Britain’s Industry
Department. British Telecom,
the Post Office and Plessey.
Japan has been represented by
officials from the Ministry of
Posts and Telecommunications:
Nippon Telenhone and Tele-
graph. the domestic telecom-
munications monopoly: KDD.
which handles international
communications, and the
Japanese Post Office.

The talks started after a visit
to Japan last autumn by Sir
Keith Joseph, the former Indus-
try Secretary. Japan and Britain
have already agreed on joint
ventures in several fields of
communications technology.

GEC-Marconi of Britain is
collaborating with Mitsubishi of
Japan nn'the international mar-
keting of satellite earth stations,
while the British Post Office i?
conducting trials of a compact,
low-cost facsimile transmission
system developed by the
Japanese.

Yorkshire
miners
join NHS
pay dispute

By Brian Groom^ Labour Staff

HEALTH SERVICE unions
claimed success last night as
more than 60.000 miners and
other non-NHS workers joined
I their third 24-hour strike in sup-
j port of a 12 per cent pay claim.

But in the Commons. Mr
j Norman Fowler, Social Services
I Secretary, gave no Indication
that he was prepared to make
! concessions.

The Yorkshire coalfield was
brought to a near-standstill as
42.000 miners walked out in
support, halting 47 out of 57
pits. Production of 100,000
tonnes of coal worth £3m was
lost Although miners, xndde up
the bulk of those taking sym-
pathetic action, railwaymen.
postmen, council workers and
others joined picket tines.

The two biggest TUG health
unions, the National Union of
Public Employees (Nupe) and
the Confederation of Health
Service Employees (Cohse),
claimed tbat 700,000 health
workers took part tn the strike.

Troops were not used during
the day but in Northern Ireland,
the Royal Ulster Constabulary
and the Knights of Malta
stepped in -to provide emer-
gency ambulance cover.
Ambulancemen later relented
and agreed to man cardiac units
j and answer “extreme" emer-
ge no* calls.

Insufficient emergency cover
was also reported in . some
places. Including hospitals in
Leeds. Rotherham. St Helen's
and Tooting. South London.
Management and staff volun-
teers provided cover.

The Department of Health
: and Social Security acknow-
j ledged this was the biggest
strike so far. with -the strongest
action in some parts of the
North, particularly Yorkshire.
Many areas were reduced to
accident and emergency ser-
vices. but the national picture
remained patchy.

In Glasgow, health workers
at four hospitals said they
i were extending the strike to
three days. In Edinburgh, the
situation at the 950-bed Royal
Infirmary was described as
critical after pickets prevented
linen being taken in or out.

In the Commons, Mr Fowler
said: "We strongly deplore the
action being taken.”

He gave no dear indication
whether he was prepared to sit
out the dispute or may con-
sider increasing the 4 to 6.4 per
cent offers to Im NHS workers.
He is believed to have decided
against arbitration.

Clarification of Mr Fowler’s
intentions may come today
when he meets Dame Catherine
EalL general secretary of the
Royal College of Nursing.

The TUC Health Services
Committee may decide today to
step up the dispute. Nupe wants
an all-out strike, while Cohse
wants selective strikes.

Miners join pickets and Fowler
deplores stoppage, Page 12

Weather

. UK TODAY

SUNNY periods and dry after
early fog.

England, Wales. S. W. Scotland,
N. Ireland

Sunny periods, very warm,
cooler with fog on some
coasts. Max 25C (77F).

N. E. Scotland, Orkney, Shetland

Sunny intervals, cloud. Max 15C
(59F).

Rest or Scotland

Sunny periods, cooler on coasts.
Max 22C (72F). ,

Outlook: Hot with thunder}’
rain, then much cooler and
unsettled.

WORLDWIDE

Reasan

slroncly denying that it

involved ” cultural imperia-

lism ”

Mr Reagan said that the U.S.
planned to consult leaders of
other nations nn rhe scheme. He
pointed lo a Council of Europe

proposal to invite parlia-

mentarians from democratic
countries lo a meeting in Stras-
bourg next year 2s a possible
opportunity io conduct such
consultations.

There would also be an inter-
national meeting on free elec-
tions in Washington in Novem-
ber. and next spring a confer-
ence of world authorities on

constitutionalism and self-
government hosted by the Chief
Justice of the U.S.. he said.

While the Soviet Union was
not immune from “ internal "
democratic protest movements,
as in Poland, he did not ask
for “an instant transforma-
tion " in Soviet society.

■* At the same time we invite
the Soviet Union to consider
with us how ihe competition of
ideas and values, which it is
committed to support, can be
conducted on peaceful and
reciprocal basis.”

Israel

Continued from Page 1

sation ( PLO ) . tn Lebanese
severe ignty.

9 The removal nf the Pales-
tinian guerrillas from Lebanon.
9 The creation of a demilitar-
ised zone, 25 miles deep, north
of ihe Israeli border.

Heavy fighting raged on
several fronts. The ancient port
city of Tyre in the south was
reported to be in flames and
in.QUO people had been placed
under Red Cross care.

There were fierce battles in
and around Sidon — Lebanon's
third largest city, with a popu-
lation of 250,000— and Daniour.
the last main PLO stronghold
on the coast south Of Beirut.

Israel claimed to have shot
down *ix Syrian jets during
I he day, including two in a
dog-fight over northern Israel,
and Mr Begin urged Damascus
not to become involved in the
fighting. Syria is estimated to
have 3H.OOO troops in Lebanon.
The Syrians claimed to have
destroyed a number of Israeli
aircraft.

A senior Lsraeli officer inld
correspondents that a number
nf Syrian tanks had been hit by
Israeli fire. He stressed tbat

there bad been only clashes
between small field forces, and
no major armoured battles.

Mr Philip TIahib. Hie .special
U.S. envoy rn the region, met
Mr Begin twice yesterday. He
did not appear 10 ha\> moved
ihe Israeli leader from his
ironps will nor leave the areas
captured in Lebanon until a
permanent new arrangement
can be reached. He was
reported to be flying to Damas-
cus today.

Israel was believed to control
most of the coast road from
Beirut to ihe south, and has also
moved in strength into the
central Chouf area, which over-
looks heavy concentration* of
Syrian, troops in the Bekaa
Valley. Lebanese officials con-
firmed that Israeli forces had
moved into Beueddme. the
capital of the Chouf region and
were pushing nn.

Palestinian guerrilla com-
manders insisted that the loss of
their bases in the south would
not halt their operations. “we
don't care how much land »ne
Israelis occupy because our
guerrillas will continue (heir
hit-and-run operations oenum

en°my lines.” nne said.

Syrian official communiques
also became more belligerent
during the day. A military
spokesman said that the Israelis
had widened their aggression.
“Our land troops 3nd air force
are confronting enemy armour

and using all the means at their
disposal. Wc have inflicted
heavy casualties on ihe Israelis.”
he said.

Israel reported yesterday
morning that 25 of its soldiers
had been killed in the first two
days of fighting, which began on
Sunday. Another 96 had been
wounded and seven were
missing.

Palestinian guerrilla losses
are likely to have run into
several hundreds. There is
certain lo be a heavy civilian
casualty toll.

• The wife of Mr Shlomo
Argov. the Israeli ambassador
to Britain, who was still
unconscous last, night after an
attempt on his life last Thurs-
day. is to attend a mass rally
at the Royal Albert Hall on
Sunday, which will call Cor
closure of the PLQs London
offieoi

■ AiasciO
j Alq.cr*

[ Amsdm.

| Athens

■ B.ihiAHi

I Barelf-a.

■ Beirut

; BaUdSi
' BcigiiJ.

: Ber!,n

; B-jm-s
j Birwil-m
I RUektu .

. flnrriv
1 Brul^n.

; Bnl'ol
Pousse’s
BuCdst.

• Cairo
| C* <rt II
i CiiS'lj'fti

j CiceT.

! Ch.cn f
i Cfl-nni)

I Cpr’nrjn.
I Carlu
; Denver t
I Dublin
1 Dbrvnk.

| PtlnbflH.

I F.irn
I Flo r an;H
I Frankfr.

! Fjnchal
j G“r»w
I >? bri?r,

{ fi"sn'w

! IJ'liKM
i HeictnW
; M Kanrj
•nn*Ijrfc
| Inwms-s
I I fr Mar
[ l*"apfei»i
l jGI-rey
[ Jc'hurij
j l Pbj.
j Lsfao"

I Lrc* rno
! londfi"

Y-day ■
middn7
-C *. c

22 72
25 77
34 33
25 77

P 21 70

2 23 73

r 24 75
1 23 73
R IS M
$ 20 *8
S 25 77

F 23 73

3 24 73

"1 Bfi
32 72

s 20 63

21 70

19 66
18 64
28 S3

75 77
73 71
?1 7TI
20 0E

?*j TO
?4 7?

IS FA

17 63

21

F ?? 7?
3 23 73

S 24 73

L. Anq.t
Luxmtxi.
Luster
Medr'd
i Meiaica

: Malaga
Malta
M'chsir
Mdlbnc.
M* C.t

Miami!

Minn

Mobc-iw

.Munich

•Nai'nbi

‘ Neclna
:N?S9JU
Nwcsti

IN Ycrkt
Nice
Nicosia
OpiJ'Jd
Oslo

• Par.s
Perth

•Prague
iRykjvk..
i Rhodes
Rit> J‘ct

• Rome
rSeubrj-
i Scuscot
(S Mnu.

, Smg»r. F
■ S'Haoot
. StiWlff c
iStfssbq.'
•Svdnov f
Tjnq er
Tfrl Ainu
i Tenants

Tokyo
•T'r'ntef .
Tunis .
.Valenctl
Ven.ee •.£
Vietinf .- S
I Warsaw
l Zurich .

Y’day
midday
•C "F

5 23 77

27 Bl
27 81
23 S3
23 57
25 77
11 52

9 ct

r; n

23 71

S 13 H
F ^ 73

20 F3
23 77
17 63

S 2E 79

Fas*.
C 13 35
16 61

S 28 82

29 84
22 72

THE LEX COLUMN

Bank lendin;
on parole

Bank base rates were trimmed - — :

by half a point to 12} per cent 1 A CQ4 O

yesterday — most of the clean? rs . Index rose 1-4 tO •
cultivated their margins by -

fank of Eng- dc'cline approaching

wh^^/^^lTa^bllesare -Lge. The equity market has 10 per cent

'4-Xd 1 “endrtffi th'e F^klS, this °ZJs of

"ay rather rf bSeaSh seems « lre » d y tQ be a diminish- ™ we ^. Bass has been part»cii-

Jter Z l^ ^ ^ ,1-rabic to the falL m

had

J"»r ^?Tut n more^yin"
for "ihe group "has been ihe
pressure on o.e^iiv
Turnover in drinks n ye™ II 1 is
were 2 per cent, mipb n

which to

larly vulnerable

consumption.

while it

the

f&SSSF.

its norma] state of financial Z fits enjoyed .from the_ Atwells

deficit after an exceptionally ae “®_ strike in

long tax-paying season was
always going to reduce the total
of private sector loan demand
last month. In the Light of this
the fall from a recent average
of £1.8bn to £lbn or so.
seasonally adjusted, is really no
better than it ought to be. par-
ticularly' since the corporate
sector, having financed its tax
payments and not yet started
serious stockbuilding, should
have a cyclically low borrowing

sir.Ktr ». corresponding

The profits of- companies Neve rtheless. given the

reporting on tbejyear^to March J£t ent 0 f ihe squeeze, a

in trading profits in
(and amusement

have rarely exceeded outside
forecasts by much and have
often been aided greatly by
the weakness of sterling against
the dollar on the balance-sheet
dates. But .there have been
equally few disappointments,
while, the recovery in earnings

extent
decline

drinks ,

machines) of 10 per cent, ex-
cluding property, represents
defensive strength.

A healthier volume trend now
emerging in the industry means

and. to a KS* erient, dfe- £I2i6m

dends is now plain for all to X>ck bu been

S The market is underpinned a

requirement. Yesterday s whole- ^ of institutional recent yean, and the company s

sale price figures, showmg'a fall so far this image with investors has no.

ir. raw material coals, suggest i t , fmSl little ouUet in been helped by Che Inadequacy

another source of comfort for equity offerings. It also of its published information,

coroorate cash flows. Koks more attractive in re,a- The shares fell 7p yesterday in

Once_ again the personal to riW%dS nw that the 240p. where the prospective,
sector is making all the run- yieldgap between the All -Share yield is about 6 per cent-
ning. It may be argued that its coupon 25 . year stocks

Midland Bank

Like Barclays a few' mnnlhn
ago, Midland Bank has come
to the sterling market for loan
capital — wily it is picking up
its £I00m on a yield some I S
percentage points below itr.
rival. CH'arging bond interest is
a less offensive way of reducing
taxable profits than elaborate
leasing schemes, and a 14 per
cent - ' coupon, allowable for tax.
makes much more sense than
the issue of new shares on a
yield of perhaps 12 per cent
payable out of net income. That
said. Midland's free equity
ratio is less than 2 per cent,
and subordinated debt will now
make up more than a quarter
nf Its capital base. But the
equity it needs must come
through retentions, not rights.'

ning. It may
behaviour as a borrower is not
going to be affected by the odd
half point off interest rates, and
that recent declines in nominal
rates have simply kept real
rates from rising and choking
off a feeble economic recovery.
But unless U.S. rates fall
steeply, there is . not much at
present to justify a significant
further decline in the cost of
money in London.

Equities

The FT-A All-Share Index
has broken new ground this
week against a background of
painfully slow economic
recovery and unresolved con-
flict in the South Atlantic.

Yet, by contrast with the
recovery of early 1981, this
year’s spring rally has been a
fairly modest and patchy affair.

has fallen to 7 per cent.

' But the gap should be
narrowing, in. any case as
inflation falls, while the posi-
tive influence of lower price
inflation on consumer confi-
dence has yet to be established.
The consumer goods sector has
led tbe market up this year,
but is still waiting for an
advance in volume..

Bass

Bass has turned in some of
the poorest results of the
brewery sector in the half-year
to April, with pre-tax profits
down 16 per cent at £43JLm.
Without an extra £4ra . of pro-
perty profits the decline would
have been 25 per cent. The
borrowing costs of acquiring
Coral has been one factor in
the decline, exacerbated by a

j C— Owdy. F— Faif. Fn-^Fag.

R— R«iii. Sonny. Si— Steot

Sn— S mw. T— THtmflor. -'
t Noen GMT .

/J,':'

Naturally we looked at a wide choice of
sites lor this important expansion project.

We are convinced that we have made Ihe
right decision in coming to Flint in Clwyd,
not only for its Special Development Area
Status, but also for its first class communica-
tions and excellent labour relations record";

D.C. Thomas. Plans Manager, *

. Kimberly-Clark Ltd.— Flint
A major commitment by. a - ; company of
international reputation. More positive ■ proof that
when it. comes to deciding where best to relocate
or expand. Clwyd takes some beating.

For major companies like Kimberly-Clark, tfiTCugh to
smaller businesses just starting out, Clwyd works, day
in, day out.

In the last 4 years, over 200 companies have chosen
Clwyd. We know why.

For example, a highly stalled and trainable workforce with
an outstanding Industrial Relation’s record are as important
~ as -the new motorway and dual carriageway link to the
national motorway network— 15m consumers are just 2 lorrv
hours away. *

Above all, financial incentives, equal to the highest available
anywhere in mainland GB., are the key component in the Clwyd

In heipingypu We. promise positive attitudes, without red tape.

All the facts are in our colour brochure. For your coov r nrd a >-t
Wayne $. Morgan. County industrial Officer, Clwyd Countv CouS
Shire Hall, Mold, Clwyd. Tal. Mold (0352) 2121. Telex 6145^ r

Reproduction of the conmnu oi'ffaiR nWMpipcr In any maniwr is not panornad Without nn™ - ! T — „

R»3iatawd at. the Poai Oflica. . Printed Sy St. Clement's, Press '(pj. end gublished ° r ihe nublioh.. ..

Bracken House, Cannon ©treat,' .London EG4P 4BY. .. V “ ' . . q th* VSSfftj

; -' - ' re#l Tim M uj.f